Understanding Your Paycheck Quiz

Jim earned a regular hourly rate of $5 and a premium hourly rate of $6 (for every hour worked over 40 hours). He worked 45 hours last week. What is his gross pay?

$230

Peter is working for an hourly wage of $12. If he worked for 20 hours last week, what is his gross pay?

$240

Joan's gross pay is $400, from which $24.80 is deducted for FICA, $5.20 for Medicare, and $45 for income tax. What is her net pay?

$325

Sara's gross pay is $600, from which $27 is deduced for OASDI, $8 for Medicare, and $10 for income tax. What is her net pay?

$555

David earned gross pay of $160 for one week. He worked 20 hours. What is his hourly wage?

$8

Sam's take-home pay is $743. His deductions are $25 for OASDI, $5 for Medicare, and $27 for income tax. What is his gross pay?

$800

If you make $60,000 in Ohio, you are guaranteed to have the same net pay as someone who lives in New Jersey and makes $60,000

False

What is the relationship between gross pay and net pay?

Gross pay is more than net pay

Which term describes gross pay that is calculated based on the number of hours an employee has worked?

hourly wage

Which term means that you receive a fixed amount of pay for a job on a weekly, bi-weekly or monthly basis?

salary