Taxes and your pay stub

Briefly describe the purpose of taxes.

To pay for services that people want and need.

What are two examples of Employer Contributions? a. Health insurance and 401(k) b. 401(k) and Roth IRA c. Federal and state taxes d. Traditional and Roth IRA

a. Health insurance and 401(k)

What are Pre-Tax Deductions and Contributions? a. Contributions taken out of your paycheck AFTER taxes are calculated on your income b. Contributions taken out of your paycheck BEFORE taxes are calculated on your income

b. Contributions taken out of your paycheck BEFORE taxes are calculated on your income

All of the following options are benefits we receive as a result of government spending EXCEPT... a. Health and retirement benefits for seniors b. Credit card debt forgiveness c. National parks maintenance d. Public school education

b. Credit card debt forgiveness

The federal income taxes that are withheld from your paycheck are used to pay for what? a. Mandatory spending b. Discretionary spending c. Unemployment insurance d. Medicare and Social Security

b. Discretionary spending

On a pay stub, the amount of money that is left after withholdings is known as... a. Gross pay b. Net pay c. Annual earnings d. Wages and tips

b. Net Pay

Which statement best describes discretionary government spending? a. A fixed amount of money spent on the same categories every year b. The money used to pay for Social Security and Medicare c. A changing amount of money spent on different categories each year d. Money that you determine how it is spent by the government when you submit your taxes

c. A changing amount of money spent on different categories each year

What is the difference between gross pay and net pay? a. Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay b. There is no difference between gross pay and net pay c. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

c. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck? a. Local b. State c. Federal d. FICA

d. FICA

1. Which of the following are two mandatory categories of government spending that are paid for by FICA taxes? a. Military and Education b. Health and Veterans' Benefits c. Housing and Transportation d. Social Security and Medicare

d. Social Security and Medicare