Income basics

A 401(k) is a type of:

• Retirement savings plan

• Health insurance plan

• Mortgage loan

• Credit card

Income Tax is:

• A type of tax levied on individuals or entities based on their income

• A tax on goods and services

• A tax on property ownership

• A tax on financial transactions

The Internal Revenue Service is:

• A government agency responsible for tax collection and tax law enforcement in the United States

• A private organization that provides financial advice

• A department of the United Nations

• A non-profit organization that offers free tax services

What is Net Pay?

• The total salary before deductions

• The amount received after all deductions

• The gross income including bonuses

• The total tax payable

What is a Pay Stub?

• A document that outlines the details of an employee's pay.

• A type of bank statement.

• A form of identification.

• A tax return document.

Payroll Deductions are:

• Amounts withheld from an employee's paycheck

• Additional bonuses given to employees

• Company profits shared with employees

• Employee's total earnings before taxes

What are Payroll Taxes?

• Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.

• A type of tax that is levied on the sale of goods and services.

• A tax on the value of a deceased person's estate before distribution to the heirs.

• A tax imposed on the profits of a corporation.

A Post-Tax Payroll Deduction is:

• A deduction taken from an employee's paycheck after taxes have been withheld.

• A deduction taken from an employee's paycheck before taxes are withheld.

• A tax refund given to employees at the end of the fiscal year.

• A bonus added to an employee's paycheck after taxes.

A Pre-Tax Payroll Deduction is:

• A deduction taken from an employee's gross pay before taxes are withheld

• A deduction taken from an employee's net pay after taxes are withheld

• A bonus added to an employee's salary before taxes

• A tax refund given to employees at the end of the year

A Qualified Retirement Plan is:

• A retirement plan that meets the requirements of the Internal Revenue Code

• A plan that is only available to government employees

• A savings account for educational expenses

• A type of health insurance plan