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Understanding Your Paycheck: Gross Pay vs. Net Pay

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

What is the main topic of the lesson shown in the image?

a)

Understanding Your Paycheck: Gross Pay vs. Net Pay

b)

How to Write a Check

c)

Saving Money for the Future

d)

Investing in the Stock Market

2.

Which of the following best defines gross pay?

a)

The amount earned after taxes and deductions are taken out

b)

The full amount earned before any deductions

c)

The amount paid only on a monthly basis

d)

The amount paid only after bonuses are added

3.

Which of the following is a source of employment where you work for someone else?

a)

You are self employed

b)

You are hired by a business or employer

c)

You volunteer for a charity

d)

You work for free

4.

Which of the following is NOT a feature of hourly pay?

a)

Eligible for overtime pay

b)

Paid a set amount each check regardless of hours worked

c)

Minimum wage applies

d)

Only paid for the hours worked

5.

Which pay schedule results in the highest number of pay periods in a year?

a)

Weekly

b)

Bi-Weekly

c)

Semi-Monthly

d)

Monthly

6.

Anika just started a new job and her employer offers to pay her through direct deposit. Which of the following is a benefit Anika will experience by choosing direct deposit for her paycheck?

a)

You must go to your depository institution to deposit the check

b)

Money is deposited directly into your checking or savings account

c)

You receive your paycheck only on payday

d)

You do not receive a paystub

7.

Which of the following is taken out of your paycheck as a deduction?

a)

Taxes

b)

Bonuses

c)

Overtime pay

d)

Tips

8.

What is net pay?

a)

The amount of money you take home after taxes and deductions.

b)

Your total income before taxes and deductions.

c)

The amount of money you earn from investments.

d)

The amount of money you save each month.

9.

Which best explains the difference between gross pay and net pay?

a)

Gross pay is after deductions, net pay is before deductions.

b)

Gross pay is before deductions, net pay is after deductions.

c)

Gross pay and net pay are the same.

d)

Gross pay is only for part-time workers, net pay is for full-time workers.

10.

What is the formula for calculating net pay?

a)

Gross Pay + Deductions = Net Pay

b)

Gross Pay - Deductions = Net Pay

c)

Net Pay - Gross Pay = Deductions

d)

Deductions - Gross Pay = Net Pay

11.

If an employee's gross pay is $2,000 and their total deductions are $500, what is their net pay?

a)

$2,500

b)

$1,500

c)

$500

d)

$1,000

12.

A worker notices deductions for Social Security, Medicare, and federal income tax on their paycheck. What type of deductions are these?

a)

Voluntary deductions

b)

Pre-tax deductions

c)

Mandatory deductions

d)

Post-tax deductions

13.

What percentage of your earnings do you contribute to Social Security as an employee?

a)

1.45%

b)

6.2%

c)

10%

d)

2.5%

14.

What percentage of your earnings do you contribute to Medicare as an employee?

a)

1.45%

b)

6.2%

c)

7.65%

d)

2.5%

15.

What is included in mandatory payroll deductions according to the learning material?

a)

Only health insurance premiums

b)

Only retirement contributions

c)

Federal and state income tax withholding

d)

Only Social Security tax

16.

What determines how much will be withheld from your paycheck for income tax?

a)

The number of hours you work each week

b)

The number of exemptions you list on your W-4 Form

c)

The amount of overtime you work

d)

The type of job you have

17.

Which of the following is considered an voluntary deduction from an employee's paycheck?

a)

Federal income tax

b)

Health Insurance Premiums

c)

Social Security tax

d)

State unemployment tax