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Introduction to Payroll Deductions

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which statement best describes gross pay?

a)

Money received after all deductions

b)

Money earned before taxes and deductions

c)

Total of voluntary insurance premiums

d)

Employer contributions to benefits plans

2.

Which cost does FICA Medicare help cover?

a)

Employer-paid life insurance

b)

Only retirement savings accounts

c)

Health care for eligible residents

d)

State income tax liabilities

3.

If your Virginia taxable income is $54,000, what is the rounded state tax you owe using the bracket formula?

a)

$720 flat with no extra percent

b)

$2,120 after rounding to dollars

c)

$2,848 after rounding to dollars

d)

$3,600 after rounding to dollars

4.

Which statement best describes a voluntary payroll deduction for insurance premiums?

a)

Money taken for employer health insurance

b)

Money automatically for federal income taxes

c)

Money withheld to repay mandatory loans

d)

Money set aside for union-required dues

5.

Which option is an example of a retirement contribution through payroll?

a)

Depositing into a 401(k) plan

b)

Paying monthly car insurance

c)

Withholding money for property tax

d)

Buying groceries with debit

6.

What does an HRA (Health Reimbursement Arrangement) mainly help with?

a)

Saving on healthcare costs pre-tax

b)

Reducing sales tax on clothes

c)

Covering vacation travel expenses

d)

Increasing overtime wage rates

7.

How is money put into a dependent care FSA taken from an employee’s pay?

a)

Withheld only at year’s end

b)

Added as a bonus after taxes

c)

Charged as a separate monthly fee

d)

Deducted before taxes are taken out

8.

Why do some employees use pre-tax accounts like dependent care FSAs?

a)

To guarantee investment growth each year

b)

To avoid paying any payroll deductions

c)

To increase credit card reward points

d)

To reduce the amount of taxable income

9.

Which of these is an example of dependent care covered by the FSA?

a)

Private music lessons weekly

b)

Buying school textbooks online

c)

Before or after school programs

d)

Home internet service fees

10.

What resource is provided for practicing what you learned about pre-tax reimbursements?

a)

A printed workbook by mail

b)

An interactive online application

c)

A phone hotline for questions

d)

A weekend classroom seminar