Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Direct deposit means that…
a. | income taxes are automatically withheld from pay. | b. | pay is
electronically transferred into a bank account. | c. | the employee takes the paycheck to a bank and
deposits it. | d. | the employer takes the paycheck to a bank and deposits
it. |
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2.
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Net pay is the same as…
a. | earned pay. | c. | overtime pay. | b. | hourly pay. | d. | take-home pay. |
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3.
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A pay stub shows all of the following EXCEPT…
a. | income taxes and Social Security contributions. | b. | tips received from
customers. | c. | total earnings, total deductions, and net pay. | d. | total hours worked
and the amount of money earned for the pay period. |
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4.
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If your pay doesn’t vary, you can determine how much gross and net pay you
will earn in a year by looking at one pay stub and…
a. | dividing the figures for gross and net pay by the number of pay periods during the
year. | b. | multiplying the difference between gross and net pay by the number of pay periods
during the year. | c. | multiplying the figures for gross and net pay by the number of pay periods during the
year. | d. | multiplying the sum of the gross and net pay by the number of pay periods during the
year and dividing by two. |
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5.
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On a pay stub, the contributions identified as FICA are paid
toward…
a. | federal income tax. | c. | Social Security and Medicare. | b. | health insurance and
retirement. | d. | state income
tax. |
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6.
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By January 31, your employer will send you Form _____ showing your total
earnings for the year and the total amount of taxes withheld.
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7.
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Form _____ must be filled out by new employees so that the employer can deduct
the correct amount of tax from pay.
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8.
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Form _____ is sent by a bank to those who were paid interest on their
savings.
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9.
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The purpose of Form _____ is to specify the number of allowances you’re
claiming.
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10.
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In order to list itemized deductions, taxpayers must use Form _____.
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