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Budgeting quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following best describes the difference between gross pay and net pay?

a)

Gross pay is the amount after taxes, while net pay is before taxes.

b)

Gross pay is the total amount earned before any deductions, while net pay is the amount received after all deductions.

c)

Gross pay is the amount you receive in cash, net pay is the amount on your pay stub.

d)

Gross pay is always less than net pay.

2.

Which of the following is NOT typically a deduction found on a pay stub?

a)

Federal income tax

b)

Social Security tax

c)

Grocery expenses

d)

Health insurance

3.

Which deduction is required by law to be taken out of most employees' paychecks?

a)

Gym membership

b)

Social Security tax

c)

Charitable donations

d)

Union dues

4.

Which section of a pay stub shows the total amount you have earned so far in the year?

a)

Year-to-date (YTD) earnings

b)

Net pay

c)

Deductions

d)

Pay period

5.

Why is it important to review your pay stub each pay period?

a)

To see if your employer is paying you in cash

b)

To ensure all deductions are correct and you are being paid the right amount

c)

To find out your favorite color

d)

To check if you have a new job

6.

If you want to plan a monthly budget, which number from your pay stub should you use?

a)

Gross pay

b)

Net pay

c)

Year-to-date earnings

d)

Deductions

7.

If your pay stub shows a deduction for "FICA," what does this mean?

a)

It is a bonus

b)

It is a tax for Social Security and Medicare

c)

It is a loan repayment

d)

It is a tip

8.

Taxes are part of a worker's:

a)

gross pay

b)

deductions

c)

net pay

9.

What is net pay?

a)

year to date money

b)

total pay

c)

amount of money you take home.

10.

What is gross pay?

a)

The amount of money remaining after taxes have been deducted.

b)

The amount of money a worker earns per hour worked.

c)

The amount of money earned before any deductions are subtracted.

d)

The fixed amount of money paid to an employee to do a job.