Unit 3 Test Review Consumer Math

Front

FICA deductions are __________.

Back

Mandatory and based on gross income.

Front

What is the difference between Gross Pay and Net Pay?

Back

Net pay describes your pay after deductions; gross pay is before.

Front

Calculate the total for fixed expenses: Rent: $1,200, Utilities: $150, Credit card payments: $80, Groceries: $120, New Clothes: $60.

Back

Total fixed expenses = $1,200 + $150 + $80 + $120 + $60 = $1,610.

Front

Which of the following statements about payroll deductions is true?

Back

Deductions such as FICA and federal income tax are mandatory.

Front

You work 35 hours a week for 51 weeks. Which option will result in the highest annual income?

Back

$40,000 per year plus a 5% annual bonus.

Front

Define Gross Pay.

Back

Gross Pay is the total amount earned before any deductions.

Front

Define Net Pay.

Back

Net Pay is the amount earned after all deductions have been taken out.

Front

What are mandatory deductions?

Back

Mandatory deductions are amounts that must be taken from an employee's paycheck, such as taxes and FICA.

Front

What are discretionary deductions?

Back

Discretionary deductions are optional amounts that an employee can choose to have deducted from their paycheck, such as retirement contributions.

Front

How do you calculate annual income from hourly wage?

Back

Annual Income = Hourly Wage x Hours per Week x Weeks per Year.