WorksheetsIncome and Taxes Test
Total questions: 36
Worksheet time: 26mins
Any income (wages/salary) that is generated by the work someone performs
Portfolio Income
Passive Income
Earned Income
Money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor
Wage
Deduction
Salary
What is a pay period?
time worked beyond an employee’s regular hours
the number of days an employee works and is paid for each paycheck
the day a person is paid
a fixed amount of money an employee is paid to do a job
What is gross pay?
a pay period of every 2-weeks with 26 pay periods per year
the amount of money earned before any deductions are subtracted
the amount of money left in a worker’s paycheck after deductions are taken out
the amount of money subtracted from a worker’s pay
Which of these is an optional/voluntary deduction?
healthcare insurance
state income tax
Social Security tax
Medicare tax
What is a deduction?
the total income for a pay period
net pay
the amount of money subtracted from your paycheck
overtime pay
How much did Jose earn this pay period? *Before deductions were taken out
$1335.00
$445.00
$340.52
None of the above
How much money did Jose take home this pay period?
$340.52
$445.00
$1,021.56
None of the above
When you start a job, you will fill out which form to tell your employer the amount of money to withhold for taxes:
W-4
I-9
W-2
What does FICA stands for?
For Insurance Contributing Animals
Formal Initiative Costing Association
Federal Insurance Contributions Act
None of the above
Pay that is earned by an employee for working more than the standard number of hours in a day or week.
Medicare
Gross Earnings
Overtime
State Tax
A payroll tax imposed by the federal government that is used to fund Social Security and Medicare programs.
FICA
Gross Earnings
Net Earnings
State Tax
How many hours are in a typical work week?
8
20
40
2,000
The overtime rate is usually ____ times the regular rate.
1
1.5
2.5
3
As your income goes up the percentage of taxes you pay goes up (what type of tax?)
Progressive tax
Proportional tax
Regressive tax
None of the aove
Which type of tax hurts low income earners?
progressive tax
proportional tax
regressive tax
none of the above
A tax return must be filed by what date every year?
January 31
April 15th
December 15th
October 15th
What is the role of the IRS in the U.S. tax system?
To provide tax preparation services
To enforce tax laws and collect taxes
To set tax policy
To create new taxes
What is the key difference between a deduction and a credit?
What job could be considered "gig work"? Check all that apply
Uber Driver
Freelance Photographer
Lawyer
Nurse
Which of these things would be considered an advantage of gig employment?
Paying for your own supplies
Using your own transportation
Flexible Schedule
Lack of benefits
Casey works as an Administrative Assistant. Her earnings before taxes are $1,840 bi-weekly. What number does $1,840 represent?
The amount she pays for FICA
Her Overtime pay
Her Net Pay
Her gross Pay
Robert just started a new job. He earned $1,900 for two weeks of work, but the amount on his paycheck was only for $1,100. What is the most likely reason for why this occurred?
He did not account for withholding taxes or deductions.
He chose not to fill out a W-4 form when he started his job.
He declined to participate in the company's 401(k) plan.
He declined health insurance coverage.
What does YTD stand for?
years tax deductions
your total deductions
year to date
When you are paid every two weeks, you are paid...
weekly
bi-weekly
monthly
annually
Person that you are financially responsible for such as your children.
exemptions
standard deduction
dependents
tax breaks
Martha's net income is $500, if her gross income is $850, how much are her deductions?
0
$350
$500
$1350
What is the primary purpose of a W-2 form?
To report annual income and taxes withheld
To apply for a job
To claim tax deductions
To calculate overtime pay
Net Pay is...
pay you get after deductions
pay you get before deductions
gross pay
regular pay + overtime pay
If Susan worked 52 hours this week, how many hours did she work OVERTIME?
40
0
10
12
Jay makes $100,000/yr. Amy makes $50,000/yr. If they both go to the gas station and fill up their cars and it equals the same amount, what kind of tax is this considered?
Regressive Tax
Progressive Tax
Estate Tax
Payroll Tax
