1st Semester Test Study Guide

What is a salary?

• The amount of money a worker earns per hour worked.

• The amount of money remaining after taxes have been deducted.

• A fixed amount of money paid to an employee to do a job regardless of hours worked.

• The amount of money earned before any deductions are subtracted.

Chris worked 51 hours in total last week. How many overtime hours did he work?

• 9 hours

• 11 hours

• 40 hours

• 51 hours

Explain the difference between an hourly wage and a salary.

• An hourly wage is paid based on the number of hours worked, while a salary is a fixed amount paid regardless of hours worked.

• An hourly wage is a fixed amount paid regardless of hours worked, while a salary varies based on the number of hours worked.

• An hourly wage and a salary are both paid once per month.

• An hourly wage is paid once a week, while a salary is paid twice per month.

What are deductions on a paycheck?

• Amounts of money added to a worker's gross pay

• Amounts of money subtracted from a worker's gross pay

• The total amount of money a worker earns

• The amount of money a worker receives after taxes only

How do deductions affect the amount of a paycheck?

• Deductions increase the amount of a paycheck.

• Deductions do not affect the amount of a paycheck.

• Deductions decrease the amount of a paycheck.

• Deductions are only listed for informational purposes and are given back at the end of the year.

What is the difference between gross pay and net pay?

• Gross pay is before taxes, and net pay is after taxes.

• Gross pay is after taxes, and net pay is before taxes.

• Gross pay and net pay are the same.

• Net pay includes bonuses, while gross pay does not.

How many hours are considered to be a full work week?

• 8 hours

• 20 hours

• 30 hours

• 40 hours

When someone works overtime and earns time and a half, what should you multiply their hourly wage by to figure out their overtime rate?

• 5

• 2.5

• 2

• 1.5

Net pay is ...

• income before deductions

• income after deductions

• income you take home

• income with holdings

What is the definition of Gross Pay?

• state taxes

• income after deductions

• federal taxes

• total income