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Chapter 2 Test - Finance

Total questions: 40

Worksheet time: 33mins

Name
Class
Date
1.

Overtime pay is not considered when you calculate your gross pay.

a)

True

b)

False

2.

Employers must pay all employees overtime at the rate of 1.5 times the regular rate.

a)

True

b)

False

3.

Some deductions are required by law, but others are optional.

a)

True

b)

False

4.

Allowances are additions to the amount of income tax that must be withheld from your paycheck.

a)

True

b)

False

5.

Employers must contribute matching amounts into each employee’s Medicare and Social Security accounts.

a)

True

b)

False

6.

An employee required to work on a paid holiday is usually paid 1.5 times his or her regular hourly rate of pay.

a)

True

b)

False

7.

It is customary for employees to receive three to ten days a year as “sick days” without deductions from pay.

a)

True

b)

False

8.

When an employee is entitled to his or her full retirement account, the employee is said to be vested in the account.

a)

True

b)

False

9.

Employees who telecommute often submit work to their employer using e-mail and cloud computing.

a)

True

b)

False

10.

Under flextime, employees do not need to work a set number of hours per day

a)

True

b)

False

11.

A job requiring heavy physical labor is probably not a good candidate for a compressed workweek.

a)

True

b)

False

12.

The main function of a labor union is to provide support services for members.

a)

True

b)

False

13.

The process of negotiating a work contract for union members is called bargaining.

a)

True

b)

False

14.

If a union and employer cannot agree on the terms of a new contract, the union may decide to mediate, or refuse to work until an agreement is reached.

a)

True

b)

False

15.

Professional organizations often participate in political activities for the benefit of their members.

a)

True

b)

False

16.

A standard workweek is

a)

36 hours

b)

40 hours

c)

44 hours

d)

32 hours

17.

Rate × Hours Worked =

a)

Gross Pay.

b)

Incentive Pay.

c)

Overtime Pay.

d)

Net Pay.

18.

If you are a salaried worker,

a)

you will probably be paid twice per year.

b)

your overtime pay rate is higher than that of an hourly worker.

c)

no deductions will be taken from your paycheck.

d)

your gross pay is the same as your salary.

19.

For employees, the Social Security deduction is withheld at the rate of

a)

1.45 percent of the first $117,000 earned.

b)

1.45 percent of all pay earned.

c)

6.2 percent of all pay earned

d)

6.2 percent of the first $117,000 earned.

20.

In most cases, the amount of "take-home pay" an employee receives is 

a)

about 65 to 70 percent of gross pay.

b)

equal to gross pay.

c)

less than gross pay but more than net pay.

d)

equal to net pay plus overtime pay.

21.

Which of the following benefits are employers required by law to provide?

a)

paid vacations

b)

workers’ compensation

c)

child care

d)

all of the above

22.

A type of incentive pay based on quality of work done or years of service on the job is called a

a)

bonus.

b)

stock option.

c)

profit-sharing plan.

d)

pension plan.

23.

In a flexible-scheduling arrangement, the core time period is

a)

a crucial time of day when all employees must be working.

b)

the schedule requested most often by employees.

c)

the starting time for most employees.

d)

the time of day when employees get their daily assignments.

24.

A work schedule that fits the normal 40-hour workweek into less than five days is called

a)

flextime.


b)

job sharing.

c)

job rotation.

d)

a compressed workweek.

25.

Members of this type of union are skilled, semiskilled, or unskilled employees in a particular industry.

a)

craft union

b)

industrial union

c)

trade union

d)

public-employee union

26.

The total amount you earn before any deductions are subtracted is called _____ ___

(a)  

27.

(a)   is time worked beyond the regular hours.

28.

The amount of your paycheck, often referred to as your “take-home pay,” is your ___ ___.

(a)  

29.

Forms of employee compensation in addition to pay are called (a)   .

30.

Money offered to encourage employees to strive for higher levels of performance is called ________ ___.

(a)  

31.

______ _______is a plan that allows employees to receive a portion of the company's profits at the end of the corporate year. 

(a)  

32.

(a)   is a type of work schedule that allows employees to choose their working hours within a defined time limit.

33.

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

34.

A(n) (a)   is a group of people who work in the same or similar occupations, organized for the benefit of all employees in these occupations.

35.

(a)   is an organized activity intended to influence public officials to pass laws and make decisions that benefit a certain group.

36.

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? Remember overtime is time and a half

37.

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? Remember you must know how many total pays that is for the year!

38.

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

39.

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?

40.

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?