Worksheets2F: Factors that Impact Income
Total questions: 10
Worksheet time: 5mins
What is the primary purpose of income tax?
To fund public services and government operations
To encourage savings
To penalize high earners
To reduce inflation
Which IRS form is typically used by individuals to file their annual income tax return?
Form 1040
Form W-2
Form 1099
Form 940
What is the difference between gross pay and net pay?
Gross pay is after taxes, net pay is before taxes
Gross pay includes bonuses, net pay does not
Gross pay is before deductions, net pay is after deductions
Gross pay is the same as net pay
Which of the following is considered a deduction from gross pay?
Base salary
Bonus
FICA
Gross pay
What does FICA stand for?
Federal Insurance Contributions Act
Federal Income Collection Agency
Financial Investment and Contribution Act
Federal Insurance and Collection Act
Which tax is specifically designed to ensure that individuals and corporations pay at least a minimum amount of tax?
Sales tax
Excise tax
Alternative minimum tax
Income tax
How does a bonus typically affect an employee's gross pay?
It decreases the gross pay
It has no effect on gross pay
It increases the gross pay
It only affects net pay
Which of the following is NOT a type of tax mentioned in the text?
Income tax
Property tax
Excise tax
Sales tax
What is the primary purpose of Medicare tax?
To fund retirement benefits
To provide health insurance for individuals over 65
To support public education
To reduce national debt
Which of the following is a simple procedure to calculate net pay?
Add all deductions to gross pay
Subtract all deductions from gross pay
Multiply gross pay by tax rate
Divide gross pay by number of deductions
