Level 2. Taxes & Deductions Knowledge Check

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Test your understanding of Taxes & Deductions by completing the recap quiz

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Level 2. Taxes & Deductions Knowledge Check


Level 2. Taxes & Deductions Knowledge CheckVersión en línea Test your understanding of Taxes & Deductions by completing the recap quiz por WM 1 Which job is most likely to have taxes taken out automatically? a Babysitting gig b Freelance photographer c Owner of Pizza Hut d Cashier at Walmart 2 What does "gross pay" mean on a paystub? a Money received after taxes & deductions b Money earned before taxes & deductions c The money you actually take home d The money that is deposited directly into your bank account 3 Which of these is a required deduction for most workers? a FICA tax b 401(k) c Health Insurance d 403(b) 4 FICA taxes pay for which two programs? a Schools & roads b Medicare & Medicaid c Unemployment & disability d Social Security & Medicare 5 Which income type usually does not have taxes taken out automatically? a Salary income b Freelance income c Hourly income d Commission income 6 How do tax brackets work in the U.S.? a Flat rate for everyone b Lower income pays higher taxes c All income is taxed at the tax bracket you fall in d Different portions of income are taxed at different rates 7 Which statement is most accurate? a Income types affect how taxes work b Net pay is the money earned before taxes & deductions c The United States has a regressive tax system on income d Business owners are usually pay taxes on a monthly and yearly basis 8 If Joey earns $40,000/year from his job and falls in the second (12%) tax bracket, how is his money taxed? a Joey pays 12% taxes on the $40,000 b Joey pays taxes in the second bracket (12%), and then the first (10%) c Joey pays 10% of $40,000 in the first bracket and 12% of $40,000 in the second bracket d Joey pays a portion of the $40,000 in the first bracket and the remaining portion of the $40,000 in the second bracket 9 What does "year-to-date" show? a Taxes on the next pay period b All the money earned and deducted this year c Total earnings for the pay period d All the money earned and deducted from the previous paycheck 10 How are cash gifts taxed? a Only federal & state tax, no FICA tax b FICA tax, no federal & state tax c No taxes on any amount below $19,000 d No tax

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Level 2. Taxes & Deductions Knowledge Check

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Level 2. Taxes & Deductions Knowledge CheckVersión en línea

por WM

Which job is most likely to have taxes taken out automatically?

What does "gross pay" mean on a paystub?

Which of these is a required deduction for most workers?

FICA taxes pay for which two programs?

Which income type usually does not have taxes taken out automatically?

How do tax brackets work in the U.S.?

Which statement is most accurate?

If Joey earns $40,000/year from his job and falls in the second (12%) tax bracket, how is his money taxed?

What does "year-to-date" show?

How are cash gifts taxed?