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WorksheetsGross pay vs Net pay
Total questions: 35
Worksheet time: 9hrs 45mins
What is gross pay?
The amount of money you take home
The total amount earned before any deductions
The amount after taxes are taken out
The amount after insurance is deducted
If your gross pay is 1000 and total deductions are 300, what is your net pay?
$1300
$1000
$700
$300
Which of these is NOT typically a mandatory payroll deduction?
Federal income tax
Social Security tax
Health insurance premiums
Medicare tax
Calculate the Social Security tax if the rate is 6.2% on gross pay of $2000.
124.00
162.00
112.00
120.00
Which deduction is usually the largest on most paychecks?
Medicare tax
Federal income tax
State tax
Social Security tax
A worker's gross pay is $1500. If Medicare tax is 1.45%, how much is deducted for Medicare?
21.75
14.50
25.75
17.25
What is a voluntary deduction?
Federal income tax
Social Security tax
401(k) contributions
Medicare tax
If your annual salary is $48,000, what is your monthly gross pay?
$3,600
$4,000
Which statement about net pay is TRUE?
It's always more than gross pay
It's the same as gross pay
It's always less than gross pay
It varies randomly each month
Calculate federal tax withholding if the rate is 12% on gross pay of $3000
350.00
360.00
380.00
340.00
If state tax is 5% of $2500 gross pay, what is the deduction?
115.00
125.00
135.00
145.00
Which deduction helps fund retirement benefits?
Health insurance
Life insurance
Social Security tax
Dental insurance
Calculate net pay: Gross pay $ 2000, federal tax $240, state tax $ 100,FICA $153
$1,507
$1,493
$1,547
$1,527
What's the main difference between gross pay and net pay?
Timing of payment
Method of payment
Deductions
Tax year
Calculate total FICA tax (7.65%) on gross pay of $1800
A. 137.70
B. 127.70
C. 147.70
D. 157.70
What is net pay?
The total amount earned before any deductions
The amount of money taken out for taxes
The amount of money received after all deductions
The amount of voluntary contributions to retirement
If an employee's gross pay is 2000 and total deductions are 500, what is their net pay?
$2500
$1500
$500
$2000
Calculate the Social Security tax for a biweekly gross pay of $1800 using the rate of 6.2%.
$111.60
$123.40
$98.80
$116.20
What is the purpose of Form W-4?
To report annual income
To determine tax withholding
To request a raise
To enroll in benefits
A worker earns $2500 monthly. If Medicare tax is 1.45%, how much is withheld for Medicare?
$36.25
$42.50
$25.00
$32.75
If federal tax withholding is 15% on $3000, what amount is withheld?
$450
$400
$350
$500
Calculate net pay: Gross pay 2400, federal tax 360, state tax 120,FICA 183.60.
$1736.40
$1856.40
$1656.40
$1936.40
An employee's state tax rate is 5%. If they earn $2800, how much goes to state tax?
$140
$160
$120
$180
If an employee has $3000 gross pay and contributes 6% to their 401(k), how much is the contribution?
$180
$150
$160
$200
If an employee works 25 hours at $8.50 per hour, what is their gross pay?
$212.50
$195.75
$225.00
$200.00
How is net pay calculated?
Gross pay plus deductions
Gross pay minus deductions
Gross pay times tax rate
Deductions minus gross pay
Which document shows your annual earnings and tax withholdings?
I-9 Form
W-4 Form
W-2 Form
1099 Form
What deductions are required by U.S. law?
Health insurance and retirement fund contributions.
Social Security and Medicare taxes.
Union dues and charitable contributions.
Life insurance premiums and 401(k) contributions.
What is the overall term for the items that are taken out of your paycheck?
What are deductions on a paycheck?
Amounts of money added to a worker's gross pay
Amounts of money subtracted from a worker's gross pay
The total amount of money a worker earns
The amount of money a worker receives after taxes only
If an employee’s gross pay is $3,000, and the deductions are 10% for federal tax, 6.2% for Social Security, and 1.45% for Medicare, what is their net pay? (Ignore other deductions)
$2,345.50
$2,518.50
$2,382.50
$2,470.50
A worker’s paycheck has $1,800 in gross pay. Their deductions are $200 for federal tax, $111.60 for Social Security tax, $26.10 for Medicare, and $150 for health insurance. What is their net pay?
$1,312.30
$1,512.30
$1,312.50
$1,411.30
An employee’s weekly gross pay is $1,500. Federal tax is 15%, Social Security is 6.2%, Medicare is 1.45%, and health insurance is $100. What is the weekly net pay?
$1,077.25
$1,060.25
$977.25
$1,150.00
An employee earns $60,000 per year and contributes 5% of their salary to a 401(k) plan. How much is deducted annually for the 401(k)?
$3,000
$3,500
$2,500
$4,000
What types of deductions are optional?
Social Security and Medicare taxes.
Health insurance premiums and retirement plan contributions.
Federal and state income taxes.
FICA and unemployment taxes.
