Unit 1 Lesson 2 Content Quiz

What does a pay stub show?

• Only hours worked

• Employee info, gross pay, deductions, and net pay

• Only federal taxes taken out

• How much your employer earns

Gross pay is defined as:

• Total earned before deductions

• Take-home pay after deductions

• Only the hourly wage before overtime

• Federal and state taxes combined

Which of the following would be listed under deductions?

• Base salary

• Overtime pay

• Health insurance costs

• Performance bonus

If your gross pay is $500 and deductions total $125, what is your net pay?

• $375

• $625

• $125

• $500

Why are deductions taken out of your paycheck?

• To increase gross pay

• To pay taxes and benefits

• To calculate overtime hours

• To pay your employer

Which type of deduction pays for community and government services?

• Health insurance

• Taxes

• Paid Time Off

• Retirement contributions

Which type of deduction provides non-cash value like insurance or retirement savings?

• Benefits

• Gross pay

• Net pay

• Federal tax

Federal taxes are used to fund which program?

• Fire and police departments

• Social Security

• Local road construction

• State parks

State taxes are used to pay for:

• Medicare

• National defense

• Local schools and emergency services

• Social Security

Why do citizens pay both federal and state taxes?

• Federal covers national needs, state covers local needs

• State taxes are optional, federal is required

• State taxes cover military, federal covers schools

• Federal replaces benefit deductions