Express Employment March 3

amount an individual makes prior to any deductions

• Gross Wage

• Net Pay

• Paid Leave

• Flexible Spending Account

Total amount an employee is paid after all deductions

• Gross Wage

• Net Pay

• Withholdings

• Health Savings Account

Derek is paid $550 per week but only brings home $375 due to deductions. Which of the following is Derek’s net earnings?

• $925

• $550

• $375

• $175

The electronic transfer of wages into an employee’s account refers to which of the following?

• Electronic funds wiring

• Direct deposit

• Payroll debit

• Automatic teller

Which of the following best describes a pension plan?

• A form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirement

• A type of disability insurance which provides employees a partial salary if they become unable to work due to illness

• A monetary safety net for a beneficiary upon the death of an employee

• A wage replacement program for employees who suffer from job-related injuries

Which of the following is meant to motivate an employee to exceed organizational expectations?

• Paid leave

• Health insurance

• Flexible spending account

•   Incentives

Commission is the sum of money paid to an employee upon the completion of a task, typically selling a certain amount of goods or services.

• True

• False

Some states do NOT collect state income tax.

• True

• False

Net pay is the total amount an employee is paid before mandated and voluntary deductions.

• True

• False

What is the difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA)?

• HSAs belong to the employee while FSAs belong to the employer

• HSAs are taxed while FSAs are not

• HSAs are only offered by large corporations while FSAs are offered to employees of small businesses

• HSAs do not allow employers to contribute to the account while FSAs do