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Compensation and Taxes Unit Review

Total questions: 117

Worksheet time: 2hrs 18mins

Name
Class
Date
1.

How many hours are considered to be a full work week?

a)

8 hours

b)

20 hours

c)

30 hours

d)

40 hours

2.

Hunter used to work on the docks. He got paid $19 an hour. If he were to get paid overtime (time and a half) what would his hourly rate be?

a)

$28.50

b)

$38

c)

$9.50

d)

$19

3.

Harvey worked 36 hours this week. He earns $28.46 an hour. How much did he earn this week?

a)

$1024.56

b)

$1138.40

c)

$1423.00

4.

When you work more than the regular number of hours this is called a(n) ________________________.

a)

straight-time pay

b)

double time

c)

time and a half

d)

overtime pay

5.

The hourly wage is $7.75. Russell worked 9 hours. How much did he earn?

a)

$67.50

b)

$65.25

c)

$63.00

d)

$69.75

6.
I work 45 hours how many hours is overtime?
a)
5
b)
4
c)
6
d)
3
7.

Kylie is a receptionist in a doctor’s office. She worked 35 hours this week. If her regular pay is $9.68 per hour, what is Kylie's gross pay?

a)

$438

b)

$338

c)

$35

8.

Harvey worked 36 hours this week. He earns $28.46 an hour. How much did he earn this week?

a)

$1024.56

b)

$1138.40

c)

$1423.00

9.

Overtime is your normal hourly wage times (a)   for every hour you work over 40 hours in a day.

10.

What are your total deductions, if you deductions are as follows: Federal Tax $154.53, Social Security $56.74, Medicare $14.15, and health insurance premiums $48?

a)

$236.47

b)

$198.47

c)

$190.80

d)

$273.42

11.

Eli earns an 8% commission on his sales of $75,680. What is his commission?

a)

$6,054.40

b)

$60,544

c)

$605,440

d)

$75,688

12.

If Mary gets paid $12,300 a year, how much does she get paid each month?

a)

$1,025

b)

$3,075

c)

$473.08

d)

$147,600

13.

What is the amount of money you make before taxes and deductions?

a)

net income

b)

gross income

c)

commission

d)

pay stub

14.

Which are NOT possible deductions you might find on a pay stub?

a)

health insurance

b)

dental insurance

c)

retirement

d)

coupons

15.

What is the pay you earn in a YEAR?

a)

hourly rate

b)

salary

c)

commission

d)

pay period

16.

If you are calculating your MONTHLY paycheck and know your salary, how do you do that?

a)

divide by 52

b)

multiply by 12

c)

add

d)

divide by 12

17.

If you get paid every 2 weeks and you want to calculate your paycheck, and your salary is 30,000, what do you do?

a)

30,000 divided by 2

b)

30,000 divided by 26

c)

30,000 times 26

d)

30,000 times 2

18.

What is a commission?

a)

Your pay after deductions are taken out

b)

When your pay is a percentage of what you sell

c)

A piece of paper (sometimes electronic) that has your gross pay, net pay, and other information

d)

The amount of money you make in a year

19.

What is the amount of money you make AFTER taxes and deductions?

a)

gross pay

b)

pay stub

c)

net pay

d)

salary

20.

If you're looking for the total amount of taxes you have paid so far this year on a pay stub, what should you look for?

a)

YTD taxes

b)

deductions this pay period

c)

gross pay

d)

net pay

21.

What is the FIRST step when calculating taxes using tax brackets?

a)

Figure out which tax brackets you will use

b)

Subtract the gross income by the standard deduction

c)

Add your totals for each tax bracket together

d)

Do the math for each tax bracket

22.

Seth's taxable income (gross income - standard deduction) falls into the 3rd tax bracket. Which tax brackets should you use to calculate his taxes?

a)

Just the 3rd one

b)

1st and 2nd

c)

1st, 2nd, and 3rd

d)

ALL OF THEM

23.

A deduction is

a)

gross income

b)

money added to your income

c)

net income

d)

money taken out of your income

24.

Gross income minus deductions equals your net income.

If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

a)

$506

b)

$406

c)

$262

d)

$266

25.

Marco has the following deductions listed.

Federal Income tax: $44

Social Security tax: $23

Medicare tax: $5

Health Insurance: $24

What is the total amount of his deductions?

a)

$39

b)

$67

c)

$91

d)

$96

26.

Which term describes the amount of money on which a person must pay taxes?

a)

withholding

b)

net income

c)

taxable income

d)

pension

27.

Federal Contribution Insurance Act (FICA) are withheld from your paycheck and sent to the government. These are used for (Two answers are to be selected)

a)

Social Security

b)

State

c)

Medicare

d)

Sale

28.
Group Insurance
a)
Insurance coverage offered to employees by the employer
b)
Insurance policy an individual must purchase on their own
c)
Insurance offered by the government
d)
Insurance offered to a special group of people
29.

Janet Henderson is a secretary. She works Monday to Friday every week. If she worked a total of 44.5 hours this week, and her regular pay is $11.46 per hour, What is Janet’s overtime pay?

a)

$51.57

b)

$77.36

c)

$509.97

30.

Janet Henderson is a secretary. She works Monday to Friday every week. If she worked a total of 44.5 hours this week, and her regular pay is $11.46 per hour, What is Janet’s gross pay?

a)

$458.40

b)

$509.97

c)

$535.76

31.

If you have a SALARIED job that pays $45,000 a year, the calculation to find MONTHLY pay would be...

a)

$45,000 x 52

b)

$45,000 / 52

c)

$45,000 / 12

d)

$3,750 x 12

32.

Given the tax table shown, how much in taxes would you pay if you earned $42, 705 and you were single?

a)

$6,806

b)

$6,794

c)

$5,559

d)

$6,819

33.

How much would you save in taxes if you earned $42,920 and you went from filing married filing separately to filing married filing jointly?

a)

$1,267

b)

$242

c)

$1,273

d)

$1,263

34.

You're working at Target, and about to get your paycheck. Some money has been taken out! Which is it?

a)

Sales tax

b)

Property tax

c)

Income tax

d)

Net tax

35.

The more allowances you claim on your W-4...

a)

The more money you will see in your paycheck

b)

The less money you will see in your paycheck

c)

The # of allowances has no impact on your paycheck

d)

You don't claim allowances on a W-4

36.

Payroll Tax is-

a)

the amount of money you actually get to take home

b)

FREE MONEY

c)

tax taken out of your paycheck by your employer or boss

d)

tax when you buy something

37.

An amount of money set by the IRS that is not taxed

a)

itemized deductions

b)

taxable income

c)

standard deduction

d)

adjustable income

38.

The amount of income on which a person's income tax is computed

a)

taxable income

b)

adjustable gross income

c)

gross pay

d)

take home pay

39.

The form employers must provide to employees by January 31 of each year that gives annual income and withholding information. (Income money received from wages and salaries, rent, interest, and profit) is?

a)

Form W - 2

b)

Form W - 4

c)

Employment Status Form

d)

Form-L occasion

40.

mandatory fees placed on income, property or goods to support government programs

a)

Payments

b)

Deductions

c)

Receipts

d)

Taxes

41.

the federal agency that collects income taxes in the United States

(a)  

42.

A Tax Refund is...

a)

money owed by the government to taxpayers when their total tax payments are greater than the total tax owed

b)

Money owed by the taxpayers to the government when their total tax payments are greater than the total tax

c)

Money taken from one branch of government and paid to another branch..

d)

I'm not sure, but whatever it is, I want one

43.

The adjusted gross income minus standardized or itemized deductions is known as

a)

A tool used for bookkeepers who calculate deductions

b)

Take home pay

c)

Taxable income

d)

Net pay

44.

An amount subtracted directly from the tax owed is called

a)

A tax credit

b)

Tax withholding

c)

Tax Payment

45.

A tax deduction is...

a)

Taxes that are deducted for uniform or meals

b)

Deductions for time-and-a-half wages

c)

An expense, such as a charitable contribution, that can be deducted from one's taxable income

d)

An expense, such as mileage and vacation time that can be

deducted from one's gross income

46.

A tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes

a)

Form W-1

b)

Form W-2

c)

Form W-3

d)

Form W-4

47.

A dependent is someone who is ...

a)

is cared for throughout the year, including paying their expenses.

b)

is someone that needs psychological or medical treatment

c)

is anyone over the age of 18

d)

is someone who assists with one's tax forms

48.

The form that employers must provide to employees by January 31 of each year that gives annual income and withholding information. (Income money received from wages and salaries, rent, interest, and profit)

a)

Form W-1

b)

Form W -2

c)

Form W-3

d)

Form W-4

49.

Gross pay: $23,760 Married, with 4 dependents, State income tax rate 6%. Calculate the State Income Tax.

Exemptions: Married $4,000, Each dependent $2,000.

a)

$201.33

b)

$705.60

c)

$945.60

d)

$105.60

50.

Gross pay: $43,300, Single with 1 dependent, State income tax rate : 2.5%. Calculate the State Income Tax.

Exemptions: Single $2,000 Each Dependent $2,000.

a)

$982.50

b)

$1050.00

c)

$932.50

d)

$1082.5

51.

Annual Salary : $24,872; personal exemptions: $1,500.

This person is paid semimonthly.

Use the following graduated income tax rates and find the income tax withheld per pay period.

First $10,000 is 2.75%

Next $15,000 is 3.25%

a)

$275.00

b)

$709.59

c)

$434.59

d)

$29.57

52.

Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors

a)

1040

b)

W4

c)

1099

d)

W2

53.

The set amount of money, per dependent, you can subtract from your taxable income

a)

Deductible

b)

Allowance

c)

Exemption

54.

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals

a)

SNAP

b)

Medicare

c)

Social Security

55.

Ali has worked at a fashion magazine for the last 5 years. Her current annual salary is $64,000. When she was hired, she was told that she had four days of paid vacation time. For each year that she worked at the magazine, she would gain another three days of paid vacation time to a maximum of 26 days. How many paid vacation days does she now get at the end of five years of employment?

a)

26 days

b)

19 days

c)

2 weeks

d)

15 days

56.

Ina’s employer offers a sliding paid vacation. When she started work, she was given two paid days of vacation. For each six-month period she stays at the job, her vacation is increased by two days. How much vacation time will she have after working for this employer for 3.5 years?

a)

7 days

b)

4 days

c)

14 days

d)

16 days

57.

When Tyler started at his current job, his employer gave him five days of paid vacation time with a promise of five additional paid vacation days for each two-year period he remains with the company to a maximum of five work weeks of paid vacation time.

b. When will Tyler reach the maximum number of paid vacation days allowable?

a)

after 8 years

b)

after 5 years

c)

After 10 years

d)

After 7 years

58.

Martha’s employee benefits include family health care coverage. She contributes 18% of the cost. Martha gets paid biweekly. It cost $15,600 total a year for family health care coverage. How much does Martha pay per paycheck for the family coverage?

a)

$92.50

b)

$65

c)

$108

d)

$156.72

59.

Rachel contributes 20% of the cost of her individual health care. The total cost of her individual health care is $9,880. How much does Rachel pay weekly for her health care?

a)

$38

b)

$62

c)

$109

d)

$84

60.

Dan’s employee benefits include health care coverage. His employer covers 78% of the cost. If it cost $2,051 total for health care coverage, how much does Dan pay for his coverage?

a)

$451.22

b)

$294.65

c)

$317.48

d)

$377.91

61.

Liz works at Food For Thought magazine. Her employer offers her a pension. Liz’s employer uses a formula to calculate the pension. Retiring employees receive 2.1% of their average salary over the last four years of employment for every year worked. Liz is planning on retiring at the end of this year after, 20 years of employment. Her salaries for the last four years are $66,000; $66,000; $73,000; and $75,000. Calculate Liz’s annual pension.

a)

$66,000

b)

$29,400

c)

$32,650

d)

$48,000

62.

As part of their employee benefits, all workers at Light and Power Electric Company receive a pension that is calculated by multiplying the number of years worked times 1.875% of the average of their three highest years’ salaries. Mia has worked for LPEC for 30 years and is retiring. Her highest salaries were $92,000, $94,800, and $96,250. Calculate Mia’s pension.

a)

$53,071.80

b)

$48,245.77

c)

$62,119.03

d)

$65,008.20

63.

Monique Garcia works for Avon part-time. She is paid a monthly commission. She receives 20% of the first 500 in sales and 10% of the balance of her sales. Last month she sold $850 worth of Avon makeup. How much commission did she earn last month

a)

$100

b)

$85

c)

$135

d)

$250

64.

Jill picks strawberries and gets paid at a piecework rate of 55 cents per container for the first 200 container. After that she receives 75 cents per container over 200 she picks. Last week, Jill picked 450 containers of strawberries. How much did she earn?

a)

$100

b)

$447.50

c)

$297.50

d)

$187.50

65.

Thurgood Jenkins worked Mr. Simely face (call him over to your place). His current salary is $30,000. when he was hired he was given 5 days vacation. For each year he works he gains another day of vacation. He has worked for just over 6 years. How many vacation days does Thurgood Jenkins get after the 6 years?


Let x represent the number of years he has worked for the company and y represent the number of paid vacation days. Write an equation that models the relationship of these variables.

a)

y = 1x + 5

b)

y = 5x + 1

c)

x = 1y + 5

d)

y = 5x + 5

66.

Andrew Gonzales' employee benefits include health care coverage. His employer covers 78% of the total cost, which is a contribution of $1,599.78 towards the total coverage amount. How much does Andrew pay for his coverage?

a)

$2,051

b)

$451.22

c)

$278.54

d)

$1599.78

67.

Esabell Cuevas was an actress in the newest Marvel Movie. She recieves a 1% royalty of total sales of the movie. On opening day 8,000,000 went to see the movie. Average ticket prices were $12 a piece. How much will Esabell get in royalties from the movie on opening weekend?

a)

$9,600,000

b)

$96,000,000

c)

$960,000

d)

$960

68.

How many paycheck would you receive in 1 year if you are paid Monthly?

a)

12

b)

52

c)

26

d)

24

69.

How many paycheck would you receive in 1 year if you are paid Weekly?

a)

12

b)

52

c)

26

d)

24

70.

How many paycheck would you receive in 1 year if you are paid Biweekly?

a)

12

b)

52

c)

26

d)

24

71.

How many paycheck would you receive in 1 year if you are paid Semimonthly?

a)

12

b)

52

c)

26

d)

24

72.

Billy is paid biweekly. His annual salary is $59,000. What is his biweekly salary? Include a $ in your answer and round to two decimal places.

(a)  

73.

Chris sells textbooks. He receives 8% commission on his first $1,000 in sales and 12% on the balance of his sales. If his sales in one month were $14,500, how much does he receive in commission? Make sure your answer includes a dollar sign and round to two decimal places.

(a)  

74.

Carol was offered a job as a computer programmer making $60,000 per year. Another company offered Carol a position earning $1,100 a week. Which job pays more?

a)

The one offering $60,000 per year.

b)

The one offering $1,100 per week.

c)

They both make the same amount of money.

d)

Neither one pays enough for Carol to pay her monthly bills.

e)

It doesn't matter because Carol is going to look for a different job.

75.

Sally found a job posting on an Internet website. the job pays a yearly salary of $75K. What is the monthly salary based on his annual salary? Use a dollar sign and round your answer to the nearest cents.

(a)  

76.

Gabe contributes 15% of the total cost of the individual health care coverage his company offers. He pays $28.80 per week towards this contribution. What is the total value of Gabe's health care coverage for the year? Answer should have a dollar sign and be rounded to the nearest cent.

(a)  

77.

What's a check stub?

a)

What you give to the bank to deposit.

b)

The part of a paycheck that lists deductions from your salary

c)

It's an envelope.

78.

What is a 401K?

a)

Health Insurance

b)

Overtime Pay

c)

Employer Sponsored Retirement Plan

d)

Profit Sharing Benefit

79.

Employees have deductions taken out of their paychecks. Identify which are considered "elective" - not required by the government.

a)

Life Insurance

b)

Social Security

c)

Dental Insurance

d)

401 (K) or 403 (B)

80.

This required benefit is set at 6.2% that both the employee and employer must pay to prepare for retirement.

a)

Workers Compensation

b)

Social Security

c)

Unemployment Compensation

d)

Medicare

81.

This required benefit is set at 1.45% that both the employee and employer must pay to prepare for health care.

a)

Workers Compensation

b)

Social Security

c)

Unemployment Compensation

d)

Medicare

82.

Jake makes 12% commission in sales. He sells $4545 this week. What is his gross pay this week?

a)

$546.00

b)

$545.04

c)

$545.00

d)

$545.40

83.

Destiney Cedano has a thriving watch repair business in which she earned $213,578.39 in gross pay last year. The social security tax last year is 6.2% with a maximum taxable income at $127, 200. Medicare tax was 1.45%. Determine how much Destiney paid in taxes last year.

a)

$3,096.89

b)

$202,595.10

c)

$7,886.40

d)

$10,983.29

84.

Carol Anne paid $5,680 in taxes. The taxes she owed were $4,250. How much would she be refunded?

a)

$755.25

b)

$1430.00

c)

$9,930

85.

Jamari paid $2,500.00 in taxes . The taxes he owed were $3,875.00. How much tax did he owe?

a)

$6,375.00

b)

$550.00

c)

$1,375.00

86.

Sergio charges $10.50 per haircut he gives. If he gives 15 haircuts, what is his total pay?

a)

$156.50

b)

$175.50

c)

$157.50

d)

$293.00

87.

You move up in _____ as your taxable income increases.

a)

tax brackets

b)

credits

c)

refund amount

d)

allowances

88.
Single, Married Filing Joint, and Head of the Household are all examples of___ on a tax return.
a)
filing status
b)
standard deductions
c)
itemized deductions
d)
dependents
89.
By what date must employers mail Wages and Tax Statements to employees?
a)
January 31
b)
April 15
c)
January 1
d)
March 1
90.
Which of the following found on a tax return, REDUCES your tax?
a)
Unemployment compensation
b)
Taxable interest
c)
Tips
d)
Credits
91.
How long should you keep copies of your tax returns and other supporting tax documents?
a)
one year
b)
one month
c)
three years
d)
three months
92.

Your net income is the money/amount deposited in your bank account.

a)

TRUE

b)

FALSE

93.

The actual amount of money you "take home" is

a)

Gross Pay

b)

Never Enough

c)

Net Pay

d)

Payroll Income

94.

Employees have deductions taken out of their paychecks. Identify which are considered required by the government.

a)

State Income Tax

b)

Federal Income Tax

c)

Dental Insurance

d)

Social Security

95.

Employees have deductions taken out of their paychecks. Identify which are considered "elective" - not required by the government.

a)

Life Insurance

b)

Social Security

c)

Dental Insurance

d)

401 (K) or 403 (B)

96.

If your GROSS paycheck is $500. What would the amount deposited in your bank account be if you had the following deductions? $150 Taxes, $25 Social Security, $5 for dental insurance and $50 for insurance.

a)

$350

b)

$325

c)

$250

d)

None of the above.

97.

What is the federal tax owed on a taxable income of $59,475?

a)

$8943

b)

$5444

c)

$9218

98.

What is the income tax owed on a taxable income of $139,622?

a)

$26,931

b)

$13,962

c)

$22,433

99.
money that is subtracted from your gross pay for things like taxes, social security, and insurance
a)
regular pay
b)
deductions
c)
overtime pay
100.
money that is subtracted from your paycheck and given to the federal government to help run the country
a)
Local Tax
b)
State Tax
c)
Federal Tax
101.
money that is subtracted from your paycheck and given to your state's government to help run the state
a)
Local Tax
b)
State Tax
c)
Federal Tax
102.
the total amount of money you earn before any deductions are taken out of your paycheck
a)
Gross pay
b)
Net pay
c)
Total pay
103.
the amount of money you are paid after all the deductions are subtracted
a)
Gross pay
b)
Net pay
c)
Overtime pay
104.
the part of a paycheck that provides information about the pay period, including the number of hours worked and the deductions taken out of the paycheck
a)
pay receipt
b)
pay stub
c)
pay agreement
105.
the amount of money you earn for working 40 hours each week
a)
regular pay
b)
overtime pay
c)
normal pay
106.
money that is subtracted from your paycheck to be saved and paid back to you when you retire; this is sometimes written as FICA on your paycheck
a)
overtime pay
b)
insurance
c)
social security
107.

What are the Deductions from your earnings called? *

a)

Gross Pay and Interest

b)

Savings

c)

Taxes, FICA, & Social Security

d)

Net Pay

108.

What does FICA stand for?

(a)  

109.
Donna Forrester's gross pay is $72,500 a year. The state income tax rate is three percent of taxable wages/earnings. Donna takes a married exemption of $3,000 for herself and her husband. How much is withheld from her gross earnings for state income tax for the year?
a)
$2,085
b)
$2,175
c)
$70,325
d)
$70,415
110.
Warren Anderson's annual salary is $54,500. His personal exemptions total $1,500. The annual tax withheld is: 1.5 percent of the 1st $1,000, 3.0 percent of the next $2,000, 4.5 percent of the next $2,000, and 5.0 percent over $5,000. How much is deducted annually for state income tax?
a)
$2,400
b)
$2,565
c)
$2,725
d)
$2,890
111.
Charles Stickley's gross weekly pay is $915. His earnings to date for this year total $21,045. What amount is deducted weekly for Social Security taxes?
a)
$13.27
b)
$56.73
c)
$70.00
d)
$1,304.79
112.
Lonnie Flanagan's weekly gross pay is $1,250. Each week she has $64.37 in FIT deductions, plus 2% state tax, and FICA. What is her net pay?
a)
$185.00
b)
$1,085.79
c)
$1,065.01
d)
$1,435.00
113.

John's tax status is single. He is doing his taxes and determines that his taxable income is $165,421. The next step is to use the tax schedule to determine their taxes. How much does he owe in taxes?

a)

$34,250.72

b)

$52,934.72

c)

$45,125.28

d)

$21,775.15

114.

Ron decides to see what percentage his company is taking out for Federal Taxes. What percentage of his gross pay is the company taking out for Federal Taxes?

a)

0%

b)

22%

c)

6%

d)

14%

115.

Ron decides to see what percentage his company is taking out for Family Health Insurance. What percentage of his gross pay is the company taking out for Family Health Insurance?

a)

5%

b)

33%

c)

3%

d)

14%

116.

If gross inccome is $24,388, Social Security is 6.2%, and Medicare is 1.45%, what is the Social Security Tax due?

a)

$3,536.26

b)

$15,120.56

c)

$353.53

d)

$1,512.06

117.

If gross inccome is $24,388, Social Security is 6.2%, and Medicare is 1.45%, what is the Medicare Tax due?

a)

$3,536.26

b)

$15,120.56

c)

$353.63

d)

$1,512.06