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Practice for Paycheck Net Pay Test

Total questions: 65

Worksheet time: 3hrs 33mins

Name
Class
Date
1.

What is gross pay?

a)

Total amount earned before deductions or taxes

b)

Total amount earned after retirement contributions

c)

Total amount earned per hour

d)

Total amount earned after deductions or taxes

2.

How do you calculate net pay?

a)

Subtract deductions from gross pay.

b)

Divide deductions by gross pay.

c)

Multiply deductions by gross pay.

d)

Add deductions to gross pay.

3.

What is social security deduction?

a)

A deduction from an employee's paycheck to fund retirement savings.

b)

A payroll tax deducted from an employee's paycheck to fund the Social Security program.

c)

A deduction from an employee's paycheck to fund unemployment benefits.

d)

A tax deducted from an employee's paycheck to fund healthcare programs.

4.

What is health insurance deduction?

a)

A tax credit for purchasing health insurance

b)

A penalty for not having health insurance

c)

A deduction that subtracts the cost of their health insurance premiums from their gross pay.

d)

A discount on health insurance premiums

5.

What is the formula to calculate gross pay?

a)

Gross Pay = Hours Worked + Hourly Rate

b)

Gross Pay = Hours Worked * Hourly Rate

c)

Gross Pay = Hours Worked / Hourly Rate

d)

Gross Pay = Hours Worked - Hourly Rate

6.

What are some common types of deductions from a paycheck?

a)

IRA retirement

b)

income taxes, FICA, medical insurance premiums, 401K retirement plans

c)

medical expenses

d)

charitable deductions

7.

What is the formula to calculate net pay?

a)

Gross pay - Deductions

b)

Gross pay / Deductions

c)

Gross pay x Deductions

d)

Gross pay + Deductions

8.
Employees who are paid biweekly receive ______________ paychecks per year.
a)
12
b)
24
c)
26
d)
52
9.
FICA is comprised of two different parts… what are they?
a)
Social security and federal tax
b)
Social security and state tax
c)
Medicare and social security
d)
Medicare and federal tax
10.
Determines the amount of federal withholding tax from an employee's paycheck
a)
Taxation Form
b)
I9 Form
c)
W4 Form
d)
Deduction Form
11.

Outline deductions

a)

Salary

b)

Pay Stub

c)

Paycheck

d)

Payroll

12.

Physical paper in the amount of money earned

a)

Commission

b)

Direct Deposit

c)

Paper Paycheck

d)

Pay Stub

13.

Schedule which employer pays

a)

W-4

b)

Pay Date

c)

Pay Stub

d)

Pay Period

14.

Federal government program that supports health care for individuals over 65

a)

Social Security

b)

Salary

c)

Medicare

d)

Income Insurance

15.
Which is NOT a deduction taken out of paychecks?
a)
Federal/State Taxes
b)
Health Insurance
c)
FICA
d)
Net Pay
16.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
17.

Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his –

a)

Gross income

b)

Net income

c)

Income tax

d)

Property tax

18.
The correct equation for pay is...
a)
Deductions - Gross Pay  = Net Pay
b)
Gross Pay - Deductions = Net Pay
c)
Net Pay - Deductions = Gross Pay
19.
If Mike worked 32 hours and earns $10/hour,  
his ______ is $320.
a)
Hourly Pay
b)
Gross Pay
c)
Net Pay
d)
Deductions
20.

What does FICA stands for?

a)

For Insurance Contributing Animals

b)

Formal Initiative Costing Association

c)

Federal Insurance Contributions Act

d)

None of the above

21.
What is the employer name?
a)
John Smith
b)
John S. Ltd
c)
John
d)
 John Ltd.
22.
What is the length of the pay period?
a)
two weeks
b)
one week 
c)
a month
d)
three weeks 
23.

Money taken out of paycheck to cover expenses including taxes and health insurance

a)

Deductions

b)

Taxes

c)

Paystub

d)

Net Pay

24.

The date range you are being paid for

a)

Pay Period

b)

Paystub

c)

Rate

d)

YTD

25.

A 401(k) refers to:

a)

Additional current income

b)

Taxes

c)

Insurance

d)

A retirement plan

26.

YTD stands for:

a)

Year to Date

b)

Year Tax Date

c)

Yearly Tax Date

d)

Your Total Deductions

27.
What is the gross amount for the year?
a)
6,590.59
b)
22,400
c)
15,809.41
d)
2,240
28.

How much is their gross pay?

a)

1950

b)

488.74

c)

1002

d)

501

29.

The ___________ will explain how much you earned, the time period you are being paid for, how much you paid in taxes, and what deductions have been made.

a)

Net Pay

b)

Gross Pay

c)

Paystub

d)

FICA-Social Security

30.

Health Insurance is an example of a common paycheck deduction.

a)

True

b)

False

31.

Which is NOT an example of a common paycheck deduction?

a)

FICA-Social Security

b)

Health Insurance

c)

State Disability Insurance (SDI)

d)

Savings

32.

The FICA-Social Security tax rate is 6.2% of your taxable income.

a)

True

b)

False

33.

Year to Date (YTD) refers to the period from the beginning of the year until present.

a)

True

b)

False

34.

The RATE that is shown on your paystub is _________.

a)

The period of time in which the employee worked and is paid for

b)

The total amount of deductions from your pay

c)

How much you are paid per hour

d)

How many hours the employee worked

35.

It is common for employees to pay a percentage of their health insurance and their employer pays the rest.

a)

True

b)

False

36.

If you work 38 hours one week, and get paid $570 before taxes, how much do you make per hour?

(a)  

37.

If you worked from 8:30 am to 12:00 pm, took a break, and came back at 1:00 pm and left for the day at 4:30 pm, how many hours did you work?

a)

5.5 hours

b)

7 hours

c)

6.5 hours

d)

9 hours

38.

If you make $10 per hour, how much would you get paid per hour for overtime?

4 lines
39.

If you work 45 hours, how many hours are overtime?

(a)  

40.

Annual means

a)

Weekly

b)

Monthly

c)

Yearly

41.

_ is circled in purple

(a)  

42.

What is the net pay?

(a)  

43.

Glenn's gross pay is $1,453.65. He pays $15.75 to Medicare, $22.10 to federal taxes, $11.08 to state taxes, and $25 to his HSA. What is his net pay?

a)

$987.45

b)

$1,254.87

c)

$1,379.72

d)

$1,297.72

44.

_ is circled in red.

(a)  

45.

What are the total amount of deductions for this pay period?

a)

$542.88

b)

$10.44

c)

$188.14

d)

$92.40

46.

_ is circled in yellow.

(a)  

47.

_ is circled in brown.

(a)  

48.

Darla's gross pay is $2,156.45. Her deductions are: $22.15 for health insurance, $18.50 for dental insurance, $20.75 for federal taxes, $16.77 for state taxes, and $12.15 for Medicare. What are her total deductions?

a)

$66,75

b)

$2,066.13

c)

$90.32

d)

$2,054.33

49.
money that is subtracted from your gross pay for things like taxes, social security, and insurance
a)
regular pay
b)
deductions
c)
overtime pay
50.
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
51.
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
52.

sara got a paycheck that has a gross payof $1437 and a anet pay of $966.53. What percent of pay was taken out ofr taxes and other deductions?

a)

48.68%

b)

32.74%

c)

51.32%

d)

67.26%

53.

Annie needs $3751 each monthe for bills and rent, and $28 per week for weekly expenses. Assuming taxes and withholdings will be 30.89%, how much does Annie need to gross yearly?

a)

$150,430.57

b)

$46,468.00

c)

$67,237.74

d)

$32,114.04

54.

Lisa works as amechanic and makes $19.53 per hour. Lisa works 4 hours every day. Calculate the gross pay per week.

a)

$781.20

b)

$546.84

c)

$78.12

d)

$4,062.24

55.

Rachel works as a police officer and makes $23.97 er hour. Rachel works 43 hours each week. Calculate the gross pay per year.

a)

$10,307.10

b)

$7,214.97

c)

$53,596.92

d)

$1,030.71

56.

Floyd needs $2506 each month for bills and rent, and $98 each week for weekly expenses. Assuming taxes and withholdings will be 31.95%, how much does Floyd need to gross yearly?

a)

$110,071.99

b)

$35,168.00

c)

$51,679.65

d)

$23,931.83

57.

Hanna earns $783.10 per week. Hanna has 7.65% taken out for withholdings, 4.98% taken out for state taxes, and 23% taken out for federal taxes. What is the net pay per week?

a)

$14,508.96

b)

$279.02

c)

$504.08

d)

$26,212.24

58.

Annie needs $29,000 every year and earns $24.33 per hour. If the government takes out 32.76%, how many hours must Annie work per week?

a)

34

b)

35

c)

43

d)

41

59.

Harold got a paycheck that has a gross pay of $1096 and a net pay of $680.51. What percent fo pay was taken out for taxes and deductions?

a)

61.06%

b)

62.09%

c)

37.91%

d)

38.94%

60.

Dan works 41 hours each week at $22.30 per hour. Dan has 32.81% taken out for taxes and withholdings. What is the net pay per year?

a)

$614.32

b)

$31,944.54

c)

$299.98

d)

$15,599.06

61.

Zina needs $14,000 every year and earns $11.55 per hour. If the government takes out 35.90%, how many hours must Zina work per week?

a)

40

b)

38

c)

37

d)

29

62.

A nurse’s aide has earned $21,670 so far this year. She earned $1,970 this month. How much is deducted this month for Social Security?

a)

$122.14

b)

$1,343.54

c)

$12,214

d)

$134,354

63.

The annual cost of health insurance is $4,200, and the EMPLOYER pays 80%. Your pay period is SEMIMONTHLY. How much money gets deducted from your gross pay for health insurance?

a)

$35

b)

$140

c)

$840

d)

$3,360

64.

James' gross pay for the month is $8,000. He pays $1,035 in Federal Income Tax, $465 in State Income Tax, $496 in Social Security Tax, $116 in Medicare, and $388 in Health Insurance. What is James' net pay for the month?

a)

$2,500

b)

$5,500

c)

$6,500

d)

$7,000

65.

Which of these is an optional/voluntary deduction?

a)

healthcare insurance

b)

state income tax

c)

Social Security tax

d)

Medicare tax