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Chapter 2 Review - Finance

Total questions: 24

Worksheet time: 15mins

Name
Class
Date
1.

If the regular rate of pay is $9 an hour, the overtime rate is $13.50 an hour.

a)

True

b)

False

2.

Employers must contribute matching amounts of Social Security and Medicare taxes into each employee's account.

a)

True

b)

False

3.

Net pay is the result when you subtract required and optional deductions from gross pay.

a)

True

b)

False

4.

Some types of deductions may be withheld from your paycheck without your written consent because they are required by law.

a)

True

b)

False

5.

Employee benefits and incentives are offered by companies to improve morale and working conditions.

a)

True

b)

False

6.

Profit sharing is an employee benefit required of all employers.

a)

True

b)

False

7.

Job sharing is a job design in which employees are trained to do more than one specialized task

a)

True

b)

False

8.

The main function of unions is mediation to help settle disputes.

a)

True

b)

False

9.

The American Bar Association is a professional organization for lawyers.

a)

True

b)

False

10.

Lobbying is an illegal activity engaged in by many unions and professional organizations.

a)

True

b)

False

11.

Which of the following is not considered a required deduction?

a)

savings deposits

b)

social security tax

c)

state tax

d)

Federal Income Tax

12.

Employee incentives include all of the following except

a)

employee discounts.

b)

income tax deductions.

c)

wellness programs.

d)

profit sharing.

13.

A company plan whereby employees receive a portion of the earnings of the company is called

a)

retirement plan

b)

sick pay

c)

leave of absence.

d)

profit sharing

14.

A company allowance for full-time employees whereby they are paid even though they are absent for a set number of days for illness is called

a)

sick pay

b)

leave of absence

c)

retirement plan

d)

profit sharing

15.

Railroad employees would belong to a(n) _____ union.

a)

craft

b)

professional

c)

public employee

d)

industrial

16.

Teachers and police officers would belong to a(n) _____ union.

a)

craft

b)

industrial

c)

arbitration

d)

public employee

17.

The major function of unions is

a)

collecting dues

b)

conducting strikes.

c)

having meetings.

d)

bargaining.

18.

A technique for training employees to be efficient in more than one specialized area is called

a)

flextime

b)

core time period

c)

job sharing

d)

job rotation

19.

A decision facilitated by a neutral third party is called

a)

lobbying.

b)

seniority.

c)

bargaining.

d)

mediation.

20.

The Medicare deduction is withheld at a standard rate of 1.45 percent. Suppose your gross pay this week is $750. How much Medicare tax will be withheld from your paycheck?

(a)  

21.

The Social Security deduction is withheld at a standard rate of 6.2 percent. Suppose your gross pay this week is $500. How much Social Security tax will be withheld from your paycheck?

(a)  

22.

Last week Andy worked 44 hours at his job. His regular hourly rate is $12 and his employer pays the typical rate for overtime. He had the following deductions:

Federal income tax: $40.00

State income tax: $25.00

Social Security tax: $34.22

Medicare tax: $8.00

Health insurance: $15.00

(a)  

23.

Martin is a salaried employee who earns $30,000/year. He is paid on the 1st and 15th of every month. What is his gross pay per paycheck?

(a)  

24.

Last week, Josie worked 45 hours at her job. Her regular hourly rate is $10. What was Josie’s gross pay last week if her company paid the typical rate of overtime pay?



(a)