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Understanding Paychecks & Taxes

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What does 'gross pay' mean?

a)

Pay after taxes

b)

Total pay before deductions

c)

Money saved in a bank

d)

Pay from working overtime

2.

What does 'net pay' mean?

a)

Total pay before taxes

b)

Money paid for insurance

c)

Take-home pay after deductions

d)

Only federal tax money

3.

Which of the following is a payroll tax?

a)

FICA

b)

Grocery tax

c)

Property tax

d)

Sales tax

4.

FICA stands for money that supports:

a)

Social Security & Medicare

b)

Federal highways

c)

State colleges

d)

Local schools

5.

Why are taxes taken out of paychecks?

a)

To pay for public services

b)

To punish workers

c)

To give money back to employers

d)

To buy groceries for families

6.

If you earn $500 gross pay and have $100 in deductions, what is your net pay?

a)

$500

b)

$100

c)

$600

d)

$400

7.

Which tax is required by the federal government?

a)

Federal income tax

b)

Local library tax

c)

Gasoline tax

d)

State lottery tax

8.

Deductions may include (choose all that apply):

a)

Health insurance

b)

FICA

c)

Groceries

d)

Retirement savings

9.

A pay stub helps employees:

a)

Understand their deductions

b)

Buy new clothes

c)

Avoid paying taxes

d)

Ask for more hours

10.

If your gross pay is $1,000 and deductions are $250, what is your net pay?

a)

$500

b)

$250

c)

$1000

d)

$750