Chapter 2.1 Deductions from Gross Pay

Net Pay is...

• pay you get after deductions

• pay you get before deductions

• gross pay

• regular pay + overtime pay

What percent is used to calculate the Social Security deduction?

• 15%

• 6.2%

• 1.45%

• 12%

What percent is used to calculate the Medicare deduction?

• 15%

• 6.2%

• 1.45%

• 12%

________________________ is what you earned BEFORE deductions.

• Bonus Pay

• Gross Pay

• Net Pay

• Overtime Pay

Which of the below is NOT a deduction?

• Federal income Tax

• State Income Tax

• Social Security Tax

• Capital Gains Tax

A "withholding allowance" for Federal Income Tax is...

• ...an exemption you claim based on the number of people you support.

• ...a way to make extra money for doing a chore, like taking out the garbage.

• ...the money that the government charges you for having too many kids.

• ...the first $2,500 you earn.

The acronym "FICA" stands for...

• ...First In Counting Aloud

• ...Federal Investigators Cannot Argue

• ...Federal Insurance Contributions Act

• ...Financial Insurance Collective Agency

A nurse’s aide has earned $21,670 so far this year. She earned $1,970 this month. How much is deducted this month for Social Security?

• $122.14

• $1,343.54

• $12,214

• $134,354

What is the purpose of payroll taxes?

• To reduce government spending

• To fund government programs and services

• To stimulate economic growth

• To provide income for individuals

Yvonne's gross income:  $703
Yvonne's deductions:  $251.18
Yvonne's net income:  ?

• $451.82
• $551.82
• $954.18
• $25,812.00