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Cash Course: What is a Paystub?

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is deducted from your gross pay to get your net pay?

a)

Hourly rate

b)

Overtime pay

c)

Deductions

d)

Bonuses

2.

What are the three general categories of deductions?

a)

Federal, State, Local

b)

Vacation, Sick Leave, Personal Days

c)

Taxes, Retirement, Insurance

d)

Healthcare, Vision, Dental

3.

What does the pay period indicate?

a)

The total amount of your deductions

b)

The time period you are being paid for

c)

The number of hours you worked

d)

The amount of taxes you owe

4.

What is gross pay?

a)

The total hours you worked in a pay period

b)

The total amount you've earned before deductions

c)

Your take-home pay after deductions

d)

The amount of money you save for retirement

5.

What taxes are paid to the federal government?

a)

Income tax, Social Security tax, Medicare tax

b)

State tax, Local tax, Sales tax

c)

Luxury tax, Estate tax, Gift tax

d)

Property tax, Excise tax, Tariff

6.

What is a 401k?

a)

A healthcare plan

b)

A retirement savings account

c)

A federal tax

d)

A type of insurance plan

7.

What should you do if you find errors on your pay stub?

a)

Ask for a raise

b)

Deduct them from your taxes

c)

Report them to your supervisor or payroll department

d)

Ignore them

8.

How can contributions to certain retirement accounts affect your taxes?

a)

Increase your taxable income

b)

Have no effect on your taxes

c)

Reduce the amount of income tax you pay

d)

Result in higher state taxes

9.

What is the benefit of an employer matching your retirement account contributions?

a)

It increases the amount saved for retirement

b)

It covers your healthcare costs

c)

It doubles the taxes you owe

d)

It reduces your gross pay

10.

Why is it important to plan using your net pay instead of your gross pay?

a)

To increase your gross pay

b)

To avoid paying taxes

c)

To ensure you meet your budget and personal goals

d)

To reduce the amount of work you do