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Worksheets

Paychecks and Taxes

Total questions: 30

Worksheet time: 13mins

Name
Class
Date
1.

Gross income is also called “take-home pay.”

a)

True

b)

False

2.

Net income is gross income minus ____.

a)

payroll deductions

b)

bonuses

c)

interest earnings

d)

tax credits

3.

Social Security is a program paid for by voluntary contributions from employees and employers.

a)

True

b)

False

4.

The Form W-2 determines ____.

a)

if you should itemize your deductions

b)

the amount of insurance premiums employers should withhold from your paycheck

c)

how much tax was withheld from your paycheck last year

d)

whether or not you are eligible for tax credits

5.

The Form W-4 determines ____

a)

how much tax was withheld from your paycheck last year

b)

your eligibility for tax credits

c)

the amount of payroll deductions employers should withhold from your paycheck

d)

If you are entitled to a tax refund

6.

The Social Security taxes deducted from your earnings today pay for ____

a)

the health care needs of the poor

b)

the benefits you will receive at retirement

c)

the benefits others are currently receiving

d)

roads and schools

7.

Under the Social Security system, your financial need determines the amount you will eventually receive in retirement benefits or in disability benefits if you should become disabled.

a)

True

b)

False

8.

When you retire, Social Security payments start automatically.

a)

True

b)

False

9.

A dependent is someone who...

a)

relies on someone else to provide a quarter or less of their financial support

b)

relies on someone else to provide more than half of their financial support

c)

is able to fully financially support themselves

d)

provides financial support for someone else

10.

Jeremy just started a new job and completed his W-4 form. Who should he submit it to?

a)

employer

b)

spouse

c)

IRS

d)

no one- he keeps it for his records

11.

When people refer to "Tax Day" they mean...

a)

Jan. 1

b)

Dec. 31

c)

April 15

d)

Whatever day your tax refund comes in the mail

12.

Which of the following is not a form of earned income?

a)

wages

b)

commission

c)

rental income

d)

salaries

13.

Eligible workers who work more than _____ hours per week must receive overtime pay at least _____ times their regular hourly rate.

a)

30, 2

b)

35, 1.5

c)

40, 1.5

d)

40, 2

14.

Income paid as a percentage of sales made by salesperson is a _____.

a)

tip

b)

wage

c)

bonus

d)

commission

15.

The Employee's Withholding Allowance Certificate is a federal tax form that is also called the _____.

a)

W-2

b)

W-4

c)

1040

d)

i-9

16.

A(n) _____ is a report containing information used to calculate taxes owed by the taxpayer.

a)

tax return

b)

w-2

c)

audit

d)

w-4

17.

What is the amount on which taxes are calculated?

a)

net pay

b)

gross pay

c)

taxable income

d)

earned income

18.

The _____ deduction is a fixed amount that may be deducted from adjusted gross income, which is set by law and will vary according to filing status.

a)

itemized

b)

taxable

c)

exempted

d)

standard

19.

The amount of total tax owed on income for the year is known as the _____.

a)

tax bill

b)

tax refund

c)

tax credit

d)

tax liability

20.

What federal program pays for certain health-care expenses for older citizens and others with disabilities?

a)

medicaid

b)

medicare

c)

social security

d)

VITA program

21.

Which type of tax has the effect of imposing a higher tax rate on those with lower incomes?

a)

progressinve

b)

exicise

c)

regressive

d)

proportional

22.

Which of the following is not a benefit category provided by Social Security?

a)

disability benefits

b)

survivor benefits

c)

low-income benefits

23.

At what age do workers become eligible for full retirement benefits from Social Security?

a)

50

b)

55 1/2

c)

65

d)

67

24.

Payment for work that is usually calculated on an hourly, daily basis.

a)

wage

b)

salary

c)

commission

d)

bonus

25.

Money paid for service beyond what is required.

a)

commission

b)

bonus

c)

tip

d)

salary

26.

Amount of earnings not subject to income taxes.

a)

exemption

b)

deduction

c)

benefits

d)

allowance

27.

Amount that is subtracted from adjusted gross income, which further reduces taxable income.

a)

allowance

b)

tax exempt

c)

tax deduction

d)

dependent

28.

Tax levied on one person or entity, but paid by another.

a)

direct tax

b)

indirect tax

c)

proportional tax

d)

income tax

29.

Tax that imposes the same tax rate on all individuals or entities regardless of differences in income or ability to pay.

a)

Proportional tax

b)

Progressive Tax

c)

Indirect Tax

d)

Income Tax

30.

Tax that imposes the same tax rate on all individuals or entities regardless of differences in income or ability to pay.

a)

exemption

b)

reduction

c)

deduction

d)

allowance