Income Topic Test

An employee has an annual salary of $48,700. They receive $1,530 in health insurance and $2,810 in paid time off per year. They drive their personal vehicle for work which costs them $500 per month, but the company reimburses them $0.53 per mile for the total work miles driven. If the employee drives 9,000 miles for work for the year, what will be their total employment compensation? a. $43,130 b. $51,810 c. $57,810 d. $59,470

B.

Bob gets paid an annual salary of $30,000 and earns 5% commission on all sales he makes. If Bob wants to make $6,000 this month, how much in sales does he need to have? a. $50,000 b. $70,000 c. $90,000 d. $120,000

B.

Byron's income last year was $61,700. He made $48,000 at his plumbing job and had income from an apartment that he rented out. If Byron earned the same amount of rent each month for the entire year, approximately how much per month did he collect? a. $940 b. $1,140 c. $4,000 d. $5,140

B.

Desiree works 28 hours per week. She has a monthly income of $120 from investments. Desiree also plays in a band one night a week making $200. She has a total annual income of $49,696. Desiree wants to ask her boss for a raise so that next year she can have a total income of $51,880. Assuming the other incomes remain the same, how much of an hourly raise will Desiree need? a. $1.25 b. $1.50 c. $1.75 d. $2.00

B.

Elisha is a photographer and charges a set fee to photograph weddings. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

B.

Kai had a gross weekly paycheck of $616 last week. Kai worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kai's hourly rate of pay? a. $16.21 b. $19.25 c. $20.53 d. $25.67

B.

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay. a. $6.49 b. $8.38 c. $64.93 d. $83.78

C.

Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true about Padraig's gross pay and total employee benefits? a. His total employee benefits are 2.8% of his annual gross pay of $72,000. b. His total employee benefits are 2.9% of his annual gross pay of $68,000. c. His total employee benefits are 12.5% of his annual gross pay of $64,000. d. His total employee benefits are 13.3% of his annual gross pay of $60,000.

C.

Use the following federal tax table for biweekly gross earnings of a single person to help answer the question below. Molly has biweekly gross earnings of $839.52. By claiming 1 more withholding allowance, Molly would have $16 more in her take home pay. How many withholding allowances does Molly currently claim? a. 1 b. 2 c. 3 d. 4

C.

Which of the following employees has the largest gross pay? a. Employee A: Total employee benefits $1,500 Total job benefits $49,800 b. Employee B: Total employee benefits $1,050 Total job benefits $51,200 c. Employee C: Total employee benefits $1,000 Total job benefits $51,900 d. Employee D: Total employee benefits $3,000 Total job benefits $52,300

C.

A statement of an employee's biweekly earnings is given below. What is the employee's gross pay? a. $703.86 b. $714.40 c. $716.26 d. $726.80

D.

Lakisha's employer pays $2,150 in health insurance and $86 in life insurance per year. She also gets $3,520 in paid time off per year. Her monthly gross pay is $4,370. What are Lakisha's total job benefits per year? a. $5,756 b. $10,126 c. $52,440 d. $58,196

D.

Phillipe has two job offers as given below and really has no preference for either company. Compare the total compensations for the job offers and explain which job you think Phillipe should accept and why.

The total employment compensation for Company A is $75,300 and for Company B it is $75,000. If he chooses the job based on total employment compensation only, then he should choose Company A. Note that the $800 job expense is a reduction in the total compensation for Company A. Also, since there is only $300 difference in total compensation, he may want to choose based on other criteria, such as how many days vacation per year or how far it is to commute ot work.

Describe how total job benefits and total employee compensation differ.

Total employee compensation is the result of deducting total job expenses from total job benefits.

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. Which employee did not have the same dollar amount in sales for the month of February as the other two employees? a. Employee #1. b. Employee #2 c. Employee #3 d. They each had the same dollar amount in sales.

A.