Personal Finance - Unit 1
False, each year
Annual salary refers to the amount of pay to be received each month.
False, not optional
Federal income tax is an optional deduction from your 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.
Answer: 26 52 weeks in a year/2=26
How many times per year are you getting paid if you get paid bi-weekly?
Answer: $2166.67 52,000/12=4,333.33 4,333.33/2=$2,166.67
If my annual pay is $52000, what is my semi-monthly gross pay?
True
In order to estimate your take home pay, you need to factor in the following required deductions; FICA (social security, medicare), state and federal income tax.
False, child support is not taxed
Income that is taxed includes such things as wages, tips, salaries, alimony, and child support.
False
Juan makes $7.25 an hour and works 30 hours a week. His net pay is $217.50
376.23 (7.45*40=298) (7.45*1.5*7=78.23) (298+78.23=376.23)
Kyle earns $7.45 an hour and worked 47 hours this week, what is his gross pay?
Answer: 945.12 472.56*2=945.12
My weekly pay is $472.56, what is my bi-weekly pay?
True
Some types of deductions may be withheld from your paycheck without written consent, for example federal income tax.
Answer: $261 (36*7.25)
Stacy earns $7.25 an hour and she worked for 36 hours, what is her gross pay?
False, 1.5 times the hourly rate
Standard overtime wages are calculated at twice the regular hourly rate.
True
The largest source of revenue is income taxes.
True
To determine your gross pay for a 40 hour work week, you multiply your hourly rate by the number of hours worked.
False, major offense
When comparing tax evasion to a speeding ticket, tax evasion is a minor offense with no penalties.
True
When you purposely do not pay your taxes it is called tax evasion.
April 15
You must file your federal income tax return no later than ____, unless that date falls on a weekend or holiday.
False, does not
Everyone pays the same amount in taxes.
True
A person can be classified as a dependent if they receive half of his or her living expenses from their legal guardian.
True
The amount of money left after all deductions have been subtracted from gross pay is known as net pay.
