The Econ4U Paychecks Quiz

Gross pay is the sum of all income...

Earned during a pay period.
Available for spending and saving.
Available for spending and saving after all sales taxes have been paid.
Available after all paycheck deductions have been made.
Please select an answer.

The current federal minimum wage is $7.25 per hour. How much should a minimum wage earner expect to earn in annual gross pay working 40 hours a week over 50 weeks?

$290
$1,160
$13,920
$14,500
Please select an answer.

Taxable income is what remains after all deductions and exemptions have been taken. Which of the following reduces your taxable federal income if you itemize your tax return?

Taking on a part time job
Mortgage interest and charitable gifts
Paying less state income taxes
Having fewer dependents
Please select an answer.

The income actually deposited in your bank account by your employer after adding bonuses, subtracting taxes, deducting health care premiums, contributing to retirement or savings plans and adjusting for other deductions is your:

Gross income
Net income
Taxable income
Retirement income
Please select an answer.

Which of these is a voluntary deduction from your paycheck?

Federal income taxes
Federal Insurance Contributions Act (FICA) tax or social security contributions
Medicare
Contributions to a retirement or savings plan
Please select an answer.

Which of the following is not taxable income?

Wages earned by a restaurant employee.
Tips paid in cash to a server.
A month of lawn service provided to the employee with the best customer service record.
All of the above are taxable.
Please select an answer.

Wages, salaries, and tip income are reported on Form W-2, Wage and Tax Statement. Your W-2…

Is given to you by your employer but a copy is not provided to the federal government.
Is provided to you and the federal government by your employer.
Includes all taxable income—even cash tips, gifts from employers, bonus trips, etc.
Records your taxable income. All other income earned is not taxable if it is not formally reported to the federal government by an employer.
Please select an answer.

What is FICA? The Federal Insurance Contributions Act (FICA) tax is:

Social Security tax withheld.
Medicare tax withheld.
Universal Health Care tax withheld.
Unemployment Insurance tax with held.
Please select an answer.

The federal income taxes you pay help finance:

Private libraries
National defense, veterans and foreign affairs
Medical benefits for children of all ages
Household interest on consumer debt
Please select an answer.

How much does a restaurant employer send to the federal government for every $1000 paid monthly to an employee? Recall, the Social Security and Medicare tax rates are 6.2% and 1.45%, respectively.

$6.20
$1.45
$7.65
$76.50
Please select an answer.