WorksheetsPF 4-3 Pay Stub
Total questions: 22
Worksheet time: 19mins
Which definition best describes a 401(k)?
A government tax on business profits collected each year
An employee-sponsored qualified retirement plan allowing employee and employer contributions on a tax-deferred basis
A short summary of an employee’s earnings and deductions for each pay period
An exemption that reduces the income tax withheld from an employee’s pay
Income tax is defined as:
A deduction applied after all taxes have been withheld
A tax imposed on the income generated by an individual or business
A benefit offered by an IRS-approved retirement plan
The total money paid to an employee during an accounting period
What is the role of the Internal Revenue Service (IRS)?
To set interest rates for retirement accounts
To enforce tax law and collect taxes on behalf of the U.S. government
To issue pay stubs for employers
To determine employees’ withholding allowances
Net pay is the amount an employee keeps after which of the following?
After gross pay is increased by bonuses
After all payroll deductions have been subtracted from gross pay
After income tax is refunded at year end
After employer contributions to a 401(k) are added
Which statement best defines a pay stub?
A government notice explaining tax brackets
A short summary outlining an employee’s total earnings and deductions for individual and cumulative pay periods
A form used to claim withholding allowances
An IRS approval letter for qualified retirement plans
Payroll deductions include which types of amounts?
Only voluntary amounts chosen by the employee
Only taxes imposed by the government
Involuntary and voluntary amounts withheld or deducted from an employee’s total earnings
Employer contributions to retirement plans that increase gross pay
Payroll taxes are best described as:
Taxes imposed by the government based on employee earnings
Voluntary deductions chosen by employees
Employer-paid contributions to a retirement plan
Refunds of overpaid income tax
Which option correctly contrasts pre-tax and post-tax payroll deductions?
Pre-tax deduction: taken from total earnings before any taxes are withheld
Post-tax deduction: taken after all necessary taxes have been withheld
Pre-tax deduction: taken only after payroll taxes are withheld
Post-tax deduction: taken before any taxes are withheld
Which statement defines a Qualified Retirement Plan?
A personal savings account with no tax benefits
An IRS-approved retirement plan offering various benefits and tax incentives to employees
A government tax on wages collected each pay period
A summary of an employee’s earnings and deductions
Total earnings refers to:
The money left after deductions, also called take-home pay
The total money paid to an employee during an accounting period
Only the taxable portion of an employee’s wages
Employer contributions to a 401(k) only
A withholding allowance is:
An exemption that reduces the income tax an employer withholds from an employee’s earnings
A mandatory payroll tax imposed by the government
A deduction taken after all taxes have been withheld
A summary of deductions shown on a pay stub
Select all items that are directly related to taxes in payroll contexts.
Income Tax
Payroll Taxes
Withholding Allowance
Pay Stub
A document that comes with your paycheck, showing how much you were paid and how much was withheld for taxes.
budget
transfer
pay stub
net pay
This required benefit is set at 6.2% that both the employee and employer must pay to prepare for retirement.
Workers Compensation
Social Security
Unemployment Compensation
Medicare
The form you fill out when you get a job to verify you can work is a
W4
I-9
What form do you get every year from your employers that help you file your income tax return?
W4
W2
1040
A definition of a financial term is shown:
A tax to the federal government based on your earnings.
Which term best fits this definition?
Property Tax
Payroll Tax
Sales Tax
Income Tax
The W-4 form is completed by an individual when he or she first starts a new job. What does this form help to determine?
The amount of money an individual should receive in income
The amount of money that should be returned for paying too much in taxes.
The amount of money that should be withheld in federal taxes.
The amount of money that should be withheld in state taxes.
Employers must pay this for every employee in case they cannot find a job in the future.
Family & Medical Leave Act
Jury Duty
Workers Compensation
Unemployment Compensation
These funds are set aside to provide people with an income when their career ends.
Retirement
Medicare
Disability
Unemployment
