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Unit 4 Sources of Income and Employee Benefits

Total questions: 25

Worksheet time: 34mins

Name
Class
Date
1.

What is compensation?

a)

the amount of money a person is paid per hour

b)

the annual amount of money that a person is paid

c)

money paid and benefits provided to a person for their work

d)

overtime pay

2.

What are wages?

a)

the amount of money a person is paid per hour

b)

the annual amount of money a person is paid

c)

money paid and benefits provided to a person for their work

d)

tips and overtime pay

3.

What does salary mean?

a)

tips and overtime pay

b)

the amount of money that is paid per hour

c)

money paid and benefits provided to a person for their work

d)

fixed amount paid on a bi-weekly or monthly bases

4.

What are benefits?

a)

raise in pay/salary

b)

promotion on the job

c)

all forms of compensation other than salary & wages

d)

putting money into your savings account

5.

What is Social Security?

a)

a federal program that ensures workers will get income after they retire

b)

money that goes towards tips

c)

making sure that employees are social on the job

d)

money in your checking account

6.

Managers and professionals are usually paid a salary.

a)

True

b)

False

7.

A person paid hourly is eligible for what?

a)

longer hours

b)

overtime pay

c)

tips and weekends off

d)

work whenever they want to

8.

The W-2 form is used to...

a)

gather tax withholding information for an employee.

b)

purchase health insurance from an insurance marketplace.

c)

report an employee's annual income and taxes.

d)

verify that their RSU account is certified with another tax form.

9.
The federal government levies a tax on personal income to provide for 
a)
national defense and law enforcement
b)
veterans and foreign affairs
c)
social programs like food and housing assistance and college grants
d)
All answers shown
10.

To what entity do we pay taxes?

a)

FBI

b)

JOB

c)

IRS

d)

Mr. Dawson

11.

After applying the standard deduction, how much of a $48,200 salary is taxable income?

a)

$48,200

b)

$36,000

c)

$38,500

d)

$26,300

12.

After applying the standard deduction, how much of a $55,000 salary is taxable income?

a)

$33,100

b)

$45,300

c)

$55,000

d)

$42,800

13.

For an individual with $36,000 in taxable income, how much money will that individual pay in the 10% tax bracket?

a)

$12,200

b)

$3,600

c)

$9,700

d)

$970

14.

What is a withholding?

a)

money the government withholds from your paycheck

b)

money you subtract from your taxable income to lower the amount of taxes you owe

c)

a person who depends on you financially

d)

money your employer withholds from your paycheck to pay taxes on your behalf

15.

What is a deduction?

a)

money the government withholds from your paycheck

b)

money you subtract from your taxable income to lower the amount of taxes you owe

c)

a person who depends on you financially

d)

money your employer withholds from your paycheck to pay taxes on your behalf

16.

What does the term 'Gross Pay' refer to?

a)

The total pay an employee receives after deducting taxes

b)

The amount of money an employee earns before any deductions

c)

The amount of money an employee earns after deducting taxes

d)

The total pay an employee receives after deducting insurance premiums

17.

What are the different types of employee compensation?

a)

Vacation days, sick leave, maternity/paternity leave

b)

Salary, wages, bonuses, commissions, benefits, and perks.

c)

Hourly pay, overtime pay, profit sharing, stock options

d)

Pension, retirement plans, healthcare benefits

18.

What is the difference between salary and wages?

a)

Salary is based on hours worked, while wages are fixed.

b)

Salary is paid monthly, while wages are paid weekly.

c)

Salary is earned by hourly workers, while wages are earned by salaried workers.

d)

Salary is fixed, while wages are based on hours worked.

19.

Which of the following is NOT an optional deduction from your pay?

a)

Medicare tax

b)

Life insurance

c)

Health insurance

d)

Savings play

20.

Tips are subject to state and federal taxes.

a)

True

b)

False

21.

Which of the following is a NOT a benefit?

a)

Vacation time

b)

Holiday Pay

c)

Salary

d)

Sick Leave

22.

Federal, Social Security, and Medicare are all types of taxes.

a)

True

b)

False

23.

Net pay can also be called

a)

Taxable income

b)

Taxed income

c)

Take home pay

d)

Bonus

24.

Any payment for the use or occupation of property.

a)

Rent

b)

Salary

c)

Interest

d)

Dividend

25.

Payments from companies in which you own stock.

a)

Rent

b)

Salary

c)

Interest

d)

Dividend