Unit 4 Review

The definition of gross income is a(n) ___________

• Amount of money paid to an employee

• Income before taxes are taken out

• Money received from a job; business

• Income after taxes and deductions

John is an HR manager and is preparing a compensation package for a new employee. What is a compensation package?

• Amount of money paid to an employee at a specific rate

• Wages or salary plus fringe benefits

• Money received from a job, business, or assets

• Income after taxes and voluntary deductions are removed

What is the definition of overtime wage?

• Amount paid to an employee at a specific rate

• 1.5x the hourly wage for hours worked over 40 hours in a single work week

• The lowest hourly wage allowed by law for most workers

• Fixed rate for every hour worked during a regular work week

What is the definition of a salary?

• Amount of money paid to an employee at a specific rate

• Fixed sum of money paid at regular intervals

• Benefits provided by employers claimed as part of gross income for tax purposes

• Money earned by producing a unit or item for a set amount of money

What is net pay?

• The total earnings on your paycheck

• How much a person is worth in total

• Three taxes that everyone must py

• Amount of your paycheck after taxes and voluntary deductions are taken out

Deductions are

• Monthly salary

• Money taken from gross pay for insurance, taxes, social security, etc.

• Person who depends on another for support

Employee benefits can be valuable extras offered beyond wages: health, life, or disability _________

• Insurance

• Flexible spending account

• Retirement

• Personal Leave

Employee benefits can be valuable extras offered beyond wages: Matching funds the employee contributes to a retirement account up to a limit

• Insurance

• Flexible spending account

• Retirement

• Personal leave

Employee benefits can be valuable extras offered beyond wages: A pre-tax account used to pay for designated expenses, such as medical expenses is known as __________

• Insurance

• Flexible spending account

• Retirement

• Personal leave

Employee benefits can be valuable extras offered beyond wages: Paid or unpaid days to use as the employee desires is _______

• Insurance

• Flexible Spending Account

• Retirement

• Personal Leave