Pay, Benefits, and Taxes
What is not part of adjustable gross income?
Child support
What is not an income tax filing status?
Divorced
Annual salary refers to the amount of pay to be received each month.
False
Everyone pays the same amount in taxes.
False
Federal tax is an optional deduction from your paycheck.
False
Workplace trends allows flexibility for employees in work hours.
Flextime
As taxable income increases, income tax rates _________.
Increase
Training employees to be efficient in more than one skill is called
Job Rotation
The American Dental Association is an example of which of the following?
Professional Organization
The income tax is an example of which type of tax?
Progressive
The right of a person hired first to be fired last is called
Seniority
What is the income upon which your tax is computed by using a tax table? (Think back to 1040EZ form)
Taxable Income
Which of the following people must sign a tax return?
Taxpayer, Taxpayer's spouse (if a joint return), tax preparer
A dependent is a person who lives with you and receives more than half his or her living expenses from you.
True
A standard workweek is 40 hours in a five-day period of 8 hours each day.
True
An explanation of pay computations and deductions must be provided with each paycheck.
True
Generally, a person cannot claim him or herself as an exemption if he or she is claimed as a dependent on another's tax return.
True
In the U.S., responsibility for paying income taxes rests with the individual.
True
Job rotation maximizes opportunities for employee skill development.
True
Regular wages or salary plus overtime wages equals gross pay.
True
Social security tax is an example of a required deduction from your paycheck.
True
Some companies will allow a leave of absence to employees who want to complete their education.
True
Taxpayers should not itemize unless their deductions exceed the standard deduction.
True
The "ability-to-pay principle" is an accepted principle of tax fairness.
True
The amount left after all deductions have been subtracted from gross pay is known as net pay.
True
The largest source of government revenue is income taxes.
True
The power to levy taxes rests with the Congress of the United States.
True
To determine your gross pay when you receive an hourly wage, you multiply your hourly rate by the number of regular hours worked.
True
Workers' compensation and unemployment compensation are taxable.
True
You must file a tax return to receive a refund of taxes withheld unnecessarily.
True
When employers and union officials cannot agree on the terms of a new labor contract, the result is often
A Strike
Give an example of a deduction that not a required employee deduction.
Answers vary.
The amount of your take-home pay is also known as
Net Pay
You must file your federal income tax return no later than____.
April 15
An examination of tax returns by the IRS is called ____.
Audit
Flextime is another word for permanent part-time employment.
False
Overtime wages are usually calculated at twice the regular hourly rate.
False
Self-employed people do not have to pay social security and Medicare taxes.
False
Tax evasion is a minor offense without any penalties.
False
Taxable income includes such things as wages, tips, salaries, alimony, and child support.
False
