Tips and Taxes

What is the difference between gross pay and net pay?

• Gross pay is the total amount of money earned before deductions, while net pay is the amount of money received after deductions such as taxes and benefits.

• Gross pay is the amount of money received after deductions, while net pay is the amount of money received before deductions

What is the formula to calculate net pay?

• Gross pay - Deductions

• Gross pay / Deductions

• Net pay + Deductions

• Gross pay + Deductions

If an employee works 40 hours in a week and earns $15 per hour, what is their gross pay?

• $300

• $700

• $400

• $600

What is the formula to calculate tip percentage?

• Tip amount x Total bill amount

• Total amount x .15-.20

• Total bill amount / Tip amount

• (Total bill amount / Tip amount) * 100

What is the typical range for tip percentage in the service industry?

• 5% to 10%

• 25% to 30%

• 15% to 20%

• 10% to 15%

If a meal costs $50 and you want to leave a 20% tip, how much should you tip?

• $10

• $5

• $15

• $20

What is the sales tax on a $100 purchase if the tax rate is 8%?

• $8

• $15

• $5

• $10

What is the sales tax on a $75 purchase if the tax rate is 7%?

• $5.00

• $5.25

• $3.75

• $6.50

If an employee works 35 hours in a week and earns $20 per hour, what is their gross pay?

• $350

• $500

• $700

• $250

What are some common deductions from gross pay to calculate net pay?

• Grocery bills

• Taxes, retirement contributions, health insurance premiums, and other benefits

• Vacation expenses

• Entertainment costs