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WorksheetsTEST-Income and Taxes
Total questions: 25
Worksheet time: 13mins
Define the term 401(k):
An employer-sponsored retirement plan, sometimes with matching funds.
A type of health insurance plan.
A government bond investment.
A savings account for education expenses.
Define the term Federal Insurance Contributions Act
A federal tax used to fund the public service programs Social Security and Medicare.
A state tax used to fund education programs.
A federal tax used to fund military operations.
A local tax used to fund public transportation.
Define the term Form 1040-EZ
A simple income tax form that can be used by anyone who has an income of less than $100,000 and is not claiming dependents.
A complex tax form used for corporate tax filings.
A tax form used exclusively by self-employed individuals.
A form used for reporting foreign income.
Define the term Form 1-9:
An employment eligibility verification form filled out by both an employer and an employee.
A tax form used for reporting income to the IRS.
A form used for applying for a business license.
A document required for vehicle registration.
Define the term Form W-2
A form prepared by an employer reporting an employee’s annual wages and the amount of taxes withheld from paychecks.
A form used by employees to report their annual income to the IRS.
A document used by employers to apply for tax exemptions.
A form used by individuals to claim tax refunds.
Define the term Form W-4.
A form specifying the number of allowances in the Employee’s Withholding Allowance Certificate.
A tax form used to report annual income.
A document for claiming tax deductions.
A form for reporting business expenses.
Define the term gross income:
All of the income received in a year.
The total expenses incurred in a year.
The net profit after taxes.
The total savings in a year.
Define gross pay
The amount of money you earn before any payroll deductions
The net amount after all deductions
The amount after tax deductions
The final take-home pay
Define income tax
Tax on the net income of an individual
Tax on the gross income of an individual
Tax on the total assets of an individual
Tax on the total expenditure of an individual
Define Medicare tax
Tax on income used to pay for the Medicare (health) program provided to individuals over the age of 65 or individuals with a disability.
Tax on income used to fund public education programs.
Tax on income used to support infrastructure development.
Tax on income used to finance national defense.
Define net pay:
An employee’s take-home pay; net pay is calculated by gross pay with deductions subtracted
An employee’s gross pay before any deductions
The total amount of taxes deducted from an employee’s paycheck
The total amount of bonuses received by an employee
Define pay stub
An attachment to an employee’s paycheck that shows the amount earned and details the payroll deductions
A document that outlines an employee's job responsibilities
A form used to apply for a job
A letter of recommendation from a previous employer
Define payroll tax
Tax deducted from an individual’s paycheck, such as for Social Security and Medicare.
A tax on corporate profits.
A tax on imported goods.
A tax on property ownership.
Define Social Security tax
Tax on income paid by both the employee and the employer to fund the Social Security system
Tax on luxury goods
Tax on property ownership
Tax on imported goods
Define tax deduction
A reduction of taxes paid on gross income
An increase in taxes paid on gross income
A method to calculate net income
A penalty for late tax payment
Define the term 'taxable income'.
The amount of money that tax calculations are based on.
The total income before any deductions.
The amount of money received as a gift.
The total amount of money spent in a year.
Define the term 'withholding allowance'.
The amount that will be withheld from each paycheck.
A deduction that reduces the amount of income tax withheld from your paycheck.
The total amount of money you earn before taxes.
A type of insurance provided by employers.
If an employee earns $500 in gross pay and $100 in deductions, what is their net pay?
$400
$500
$600
$100
An employee's pay stub shows a gross pay of $750 and total deductions of $150. What is the net pay?
$600
$750
$900
$150
What is the primary difference between net pay and gross pay?
Net pay is before deductions, gross pay is after.
Gross pay is before deductions, net pay is after.
Net pay includes bonuses, gross pay does not.
Gross pay includes overtime, net pay does not.
If an employee's gross pay is $1000 and their net pay is $800, how much were the total deductions?
$200
$800
$1,000
$1,200
Calculate the net pay if the gross pay is $900 and the deductions are $250.
$650
$900
$1,150
$250
If an employee's pay stub shows a net pay of $700 and deductions $300, what was the gross pay?
$1,000
$700
$300
$400
An employee's pay stub shows gross pay of $1500 and a net pay of $1,200. What are the total deductions?
$300
$1,200
$1,500
$2,700
Which of the following best describes net pay?
The total amount earned before deductions.
The amount left after all deductions are taken from gross pay.
The amount deducted for taxes.
The total amount of deductions.
