Personal Finance: Income and Taxes Quiz

Earned income is...

• $$$ / income from investments

• $$$ from buying an asset and selling at a higher price

• $$$ / income from employment / working

• All of the above

Earned income would include all of the following, EXCEPT...

• Salary

• Tips

• Dividends from stocks/bonds

• Hourly wage

Which is NOT true of Minimum Wage?

• It is the most you are allowed to pay someone hourly

• It is $15 in CA

• The Federal minimum wage is $7.25

• It is the least you are allowed to pay someone hourly

Which is the correct formula for calculating overtime?

• (base wage x 2) x overtime hours

• You can't do that

• (base wage x 1.5) - overtime hours

• (base wage x 1.5) x overtime hours

Which is the correct formula for Net Pay?

• gross pay + deductions

• gross pay - payroll deductions

• 1.5 x hourly wage

• deductions - gross pay

Match the following

• $$$ spent on clothes

• Fixed Expense

• Mortgage payment

• Fixed Expense

• Car Payment

• Variable Expense

• $$$ spent on food

• Variable Expense

Match the following

• shows annual earnings / tax deductions

• W-2

• form used to calculate taxes owed

• W-4

• guides employer withhold correct taxes

• 1040 Tax Return

FICA Taxes include...

• Social Security and Medicare taxes

• That's not a real thing

• State Income taxes

• Federal Income Taxes

Which are optional payroll deductions?​ (a)   ​ ​ (b)   ​ (c)   ​ (d)  

• 401k
• 403b
• State Income Tax
• Federal Income Tax
• Vision Insurance
• Health insurance
• FICA Taxes

All of the following are manditory payroll deduction, EXCEPT...

• FICA Taxes

• State Income Taxes

• Federal Income Taxes

• 401k