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WorksheetsUnderstanding Your Paycheck
Total questions: 25
Worksheet time: 25mins
What is a check for salary or wages made out to an employee called?
Direct Deposit
Paycheck
Gross Pay
Net Pay
What is a piece of paper or digital record that shows the amount of money earned and the amount removed for deductions and taxes?
Paycheck
Pay Stub
Direct Deposit
Gross Pay
What is the amount of money you receive in your paycheck after taxes and other deductions are taken out?
Gross Pay
Net Pay
Direct Deposit
Pay Stub
FICA taxes are
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare
U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.
U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare
An employee's pay stub shows a deduction for "401(k)". What does this deduction represent?
Health insurance premium
Retirement savings contribution
Union dues
Federal income tax
You can control how much or how little your employer withholds from your paycheck using the Form ____.
W-4
W-2
WD-40
W-1
What is the term for the total amount of money earned before any deductions are made?
Gross Pay
Net Pay
Take-home Pay
Disposable Income
Which document summarizes an employee's earnings and tax withholdings for the year?
W-2 Form
W-4 Form
1099 Form
Pay Stub
What is the purpose of a W-4 form?
To determine tax withholding
To report annual earnings
To apply for a job
To claim unemployment benefits
What is the term for the money taken out of your paycheck for health insurance?
Premium
Deductible
Co-pay
Out-of-pocket
Which of the following is a mandatory payroll deduction?
Social Security tax
Charitable contributions
Union dues
Health club membership
What does 'FICA' stand for in payroll terms?
Federal Insurance Contributions Act
Federal Income Collection Agency
Federal Investment and Capital Act
Federal Insurance and Care Act
What is the main purpose of Social Security taxes?
To fund retirement and disability benefits
To pay for public education
To support military spending
To finance infrastructure projects
What is the difference between gross pay and net pay?
Deductions
Bonuses
Overtime
Commissions
Which tax is typically withheld from an employee's paycheck?
Federal income tax
Sales tax
Property tax
Estate tax
What is a common voluntary deduction from a paycheck?
Retirement plan contribution
State income tax
Medicare tax
Social Security tax
What is the term for the amount of money left after all deductions are made?
Net Pay
Gross Pay
Base Pay
Overtime Pay
Which of the following is NOT typically found on a pay stub?
Employee's favorite color
Gross pay
Net pay
Deductions
What is the purpose of Medicare taxes?
To fund healthcare for the elderly
To support public schools
To finance national defense
To build public roads
What is the term for the money an employee takes home after taxes and deductions?
Net Pay
Gross Pay
Base Pay
Overtime Pay
Which form is used to report self-employment income?
1099 Form
W-2 Form
W-4 Form
1040 Form
What is the term for the percentage of income withheld for taxes?
Tax rate
Interest rate
Discount rate
Exchange rate
What is the purpose of a pay stub?
To provide a record of earnings and deductions
To apply for a loan
To register for a course
To file a complaint
Which of the following is a benefit of direct deposit?
Convenience and security
Higher interest rates
Lower taxes
Increased salary
What is the term for the money set aside for retirement from an employee's paycheck?
401(k) contribution
Health savings account
Flexible spending account
Life insurance premium
