Net Pay

What are payroll deductions?

• Amounts of money paid by the employer to cover employee expenses.

• Amounts of money taken out of an employee's paycheck to cover various expenses or obligations.

• Amounts of money deducted from an employer's bank account to pay employees.

• Amounts of money added to an employee's paycheck as a bonus.

Which of the following is an example of a payroll deduction?

• 401(k) contributions

• overtime pay

• employee benefits

• Income tax withholding

What is the purpose of payroll deductions?

• To track employee attendance and time worked

• To provide additional income to employees

• To withhold a portion of an employee's wages for various expenses.

• To calculate overtime pay for employees

Which of the following is not a common payroll deduction?

• Overtime pay

• Vacation expenses

• Health insurance

• Retirement contributions

What is the difference between gross pay and net pay?

• Gross pay is the amount received after taxes, while net pay is the total amount earned before taxes.

• Gross pay is the total amount earned after deductions, while net pay is the amount received before deductions.

• Gross pay is the amount received after deductions, while net pay is the total amount earned before deductions.

• Gross pay is the total amount earned before deductions, while net pay is the amount received after deductions.

Which of the following is not a mandatory payroll deduction?

• Income taxes

• Social security taxes

• Health insurance premiums

• Retirement savings contributions

What is the purpose of Social Security tax?

• To fund healthcare programs

• To fund the Social Security program.

• To support education initiatives

• To provide retirement benefits for individuals

Which of the following is an example of an optional payroll deduction?

• 401(k) contribution

• Overtime pay

• Social Security tax

• Health insurance premium

What is the purpose of income tax?

• To fund social welfare programs.

• To reduce income inequality.

• To encourage saving and investment.

• To generate revenue for the government.

Which of the following is not a common voluntary payroll deduction?

• Retirement plan contribution

• Health insurance premium

• Charitable donation

• Social Security tax