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Taxes and Paychecks

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Net pay means

a)

The money I make before taxes

b)

The money I make after taxes

c)

All the money I've made for the year, before taxes

2.

Which of these are "federal taxes" we've discussed?

a)

Federal income tax alone

b)

Federal income tax and FICA

c)

State income tax and FICA

d)

State income tax alone

3.

What section of a paycheck would I look at if I wanted to know how much I've earned from the beginning of the year until that pay date?

a)

"Deductions"

b)

"Year-to-Date"

c)

"Pay date"

d)

"Rate"

4.

What's the difference between "gross" and "net" pay?

a)

Net pay is what I earn before taxes come out, gross is what I receive after taxes come out

b)

Gross pay is what I earn before taxes come out, net is what I receive after taxes come out

c)

They are two terms for the same thing

5.

Which of these forms would I need to fill out in order to complete a federal tax return?

a)

Maryland Form 507

b)

W-2

c)

X-99

d)

TPS Report

6.

The form W-2...

a)

Informs my employer how much I want to withhold in federal taxes for the coming year

b)

Lets me know how much I earned for the previous year, and how much tax I withheld

c)

Informs my employer how much I want to withhold in state taxes

d)

Is another term for a standard paycheck

7.

The "deductions" section of a paycheck:

a)

Tells me how much I earned before taxes

b)

Shows me how much tax was taken out of my pay

c)

Tells me how much I make per hour

d)

Shows me how many hours I worked that pay period

8.

A "pay period" is

a)

The date I received a paycheck

b)

The recorded length of time I worked and was paid for

c)

How many taxes were taken out of my paycheck that year

d)

The entire period of time I was employed by a company

9.

Why do we fill out the form W-4 (federal) and MW507 (Maryland)?

a)

To prevent the government from taxing us

b)

To let our employer know how much income tax to withhold (set aside) from each paycheck

c)

To inform the IRS how much money we made this year

d)

To request an extension on paying taxes

10.

Which of these is an example of a progressive tax?

a)

One where higher income earners have a higher percentage of their income taxed than lower income earners

b)

One where higher and lower income earners lose the same percentage of their income to taxes

c)

One where lower income earners have a higher percentage of their income taxed than higher income earners

d)

A tax proposed by the Democratic Party, as opposed to the Republican Party