Money Matters Chapter 3
David's gross income: $127.25 David's deductions: $25.20 What is David's Net Pay?
$102.05
You work part-time for $9.50 an hour. You work 15 hours this week, how much is your gross pay?
$142.50
Marco has the following deductions listed: - Federal Income Tax: $44 - Social Security Tax: $23 - Medicare Tax: $5 - Health Insurance: $24 What is the total amount of his deductions?
$96
Overtime pay is equivalent to ------ of your regular pay.
1.5 (one and one half)
Eligible workers who work more than ------- hours per week must receiver overtime pay.
40 Hours
Payment for work that is usually calculated on an hourly, daily, or piecework basis is...
A Wage
The deadline for filing an income tax return for the previous year is...
April 15
Income paid as a percentage of sales made by a salesperson is...
Commission
A form of non-cash compensation received in addition to a wage or salary is a....
Employee benefit
Social Security is the tax that pays for medical insurance for older adults.
False
Tax deductions are calculated as a percentage of net pay... True or False?
False
Tax refunds are automatic... True or False?
False
Employee benefits includes...
Health insurance, Retirement Plan, and Vacation Time
A health care program for the elderly and disabled
Medicare
The LOWEST hourly wage employers can legally pay by law is called...
Minimum wage
A subtraction from gross pay is called a...
Payroll deduction
Which of the following is NOT a form of earned income? - wages - commissions - rental income - salaries
Rental Income
A fixed payment for work expresses as an annual figure is a...
Salary
Helps provide retirement income for the elderly and pays disability benefits
Social Security
What is the amount on which taxes are calculated?
Taxable Income
The Federal Income tax system is a "pay as you earn" system. This means...
That a working person pays taxes for each paycheck throughout the year instead of in one lump sum.
The government agency responsible for enforcing federal income tax laws is...
The Internal Revenue Service (IRS)
The more you make...
The higher percentage tax is taken out.
Money paid for service beyond what is required is a....
Tip
Gross pay is defined as
Total Income before payroll deductions
Overtime pay is calculated at 1.5 times an employee's regular rate of pay... True or False?
True
Roads, police, schools, governmental agencies, fire and emergency services are all funded by taxes... True or False?
True
Unearned income is reported on your tax form and taxes must be paid on them... True or False?
True
FICA taxes are...
U.S. Federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare
The amount of time an individual spends at work compared to the time spent in his/her personal life is...
Work-Life Balance
Jason is 15 and earned $1450 at his job last summer. Should he file a tax return?
Yes, because he may get a refund.
The formula for calculating overtime pay is...
total hours worked over 4o hours in week X the employee's rate of pay per hour X 1.5