Budgeting quiz

Which of the following best describes the difference between gross pay and net pay?

• Gross pay is the amount after taxes, while net pay is before taxes.

• Gross pay is the total amount earned before any deductions, while net pay is the amount received after all deductions.

• Gross pay is the amount you receive in cash, net pay is the amount on your pay stub.

• Gross pay is always less than net pay.

Which of the following is NOT typically a deduction found on a pay stub?

• Federal income tax

• Social Security tax

• Grocery expenses

• Health insurance

Which deduction is required by law to be taken out of most employees' paychecks?

• Gym membership

• Social Security tax

• Charitable donations

• Union dues

Which section of a pay stub shows the total amount you have earned so far in the year?

• Year-to-date (YTD) earnings

• Net pay

• Deductions

• Pay period

Why is it important to review your pay stub each pay period?

• To see if your employer is paying you in cash

• To ensure all deductions are correct and you are being paid the right amount

• To find out your favorite color

• To check if you have a new job

You receive a pay stub with a net pay that is lower than you expected. What steps should you take to figure out why?

• Immediately ask for a raise

• Review the deductions and withholdings on your pay stub and compare them to previous pay stubs

• Throw away the pay stub

• Spend less money

If you notice an error in your pay stub, such as a missing overtime payment, what should you do?

• Ignore it, as it will fix itself

• Report the error to your employer or payroll department and provide evidence

• Spend the money you have

• Wait until next year

If you want to plan a monthly budget, which number from your pay stub should you use?

• Gross pay

• Net pay

• Year-to-date earnings

• Deductions

If your pay stub shows a deduction for "FICA," what does this mean?

• It is a bonus

• It is a tax for Social Security and Medicare

• It is a loan repayment

• It is a tip

Gross Pay means

• A worker's total pay

• things deducted from paycheck

• take home pay