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Tax and Insurance Quiz

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

What does FICA stand for?

a)

Federal Insurance Contribution Act

b)

Federal Income Contribution Act

c)

Federal Insurance Collection Act

d)

Federal Income Collection Act

2.

What is the purpose of Social Security taxes?

a)

To fund retirement and disability benefits

b)

To provide health insurance

c)

To support education

d)

To fund military expenses

3.

What is the tax rate for Medicare for both employers and employees?

a)

1.45%

b)

2.00%

c)

1.25%

d)

1.75%

4.

What is the range of income tax rates in the U.S.?

a)

10% to 35%

b)

5% to 25%

c)

15% to 40%

d)

20% to 30%

5.

Which of the following is a voluntary deduction?

a)

401(k) contributions

b)

Social Security

c)

Medicare

d)

Income tax

6.

What type of insurance is an agreement where an insurance company pays for medical expenses?

a)

Health Insurance

b)

Life Insurance

c)

Disability Insurance

d)

Car Insurance

7.

What does a life insurance policy provide?

a)

Financial safety net to loved ones after you pass away

b)

Coverage for medical expenses

c)

Protection against theft

d)

Investment opportunities

8.

What is a pre-tax health savings plan used for?

a)

Paying for qualified medical expenses

b)

Investing in stocks

c)

Buying a house

d)

Paying for education

9.

What does short term disability insurance cover?

a)

Beneficiary's earned income against disability

b)

Medical expenses

c)

Life insurance

d)

Retirement savings

10.

What are charitable donations usually directed towards?

a)

Union representatives in politics or an organization close to your role

b)

Buying stocks

c)

Paying taxes

d)

Purchasing insurance

11.

What are union dues used for?

a)

Financial contribution to the operation of the union

b)

Paying for health insurance

c)

Funding retirement plans

d)

Paying income taxes

12.

Which deduction is not optional?

a)

FICA

b)

401(k) contributions

c)

Health Insurance

d)

Donations

13.

What year was the Social Security program established?

a)

1935

b)

1945

c)

1925

d)

1955

14.

What is the purpose of Medicare?

a)

Provides health insurance to those in retirement and on disability

b)

Funds education

c)

Supports military expenses

d)

Provides life insurance

15.

What is a 401(k)?

a)

A retirement savings plan

b)

A health insurance plan

c)

A life insurance policy

d)

A tax deduction

16.

During your working years, social security tax takes a percentage of your earnings. Then when you retire or are disabled

a)

your social security tax is used to pay medical costs.

b)

you become eligible to receive monthly payments.

c)

you lose your benefits.

d)

you can leave your Social Security benefits to your loved ones when you die.

17.

Which of the following provides insurance to individuals over the age of 65, some individuals with disabilities and individuals with permanent kidney failure?

a)

Self-insurance

b)

Social Security

c)

Medicare

d)

Medicaid