Chapter 8 Financial Literacy Test

Form ___ is used by U.S. taxpayers to file an annual income tax return.

Check or direct deposit for overpayment of taxes.

Most taxpayers are responsible for filing a tax return by April 15 of each year.

On a pay stub, the contributions identified as FICA are paid towards...

The lowest hourly rate an employer may legally pay most workers.

Tax planning can help you reduce the amount of tax you owe.

After a certain amount of time, a participant in a retirement plan becomes ____, or entitled to their retirement money.

Employers usually don't provide benefits to temporary employees.

Federal income tax returns are sent to the ____.

Receive pay from an employment agency for short-term jobs at various companies.

Employers offer group healthcare plans that allow employees and their dependents access to healthcare at a reduced cost.

Form ____ must be filled out by new employees so that the employers can deduct the correct amount of tax.

Examples include vacation, sick leave, and paid holidays.

Form 1040 is used by taxpayers to submit tax information

Salaried workers can check their pay stub for accuracy by multiplying the number of hours by the hourly rate.

Money given to an employee by a customer in exchange for a service.

An amount subtracted directly from the amount you owe.

A pay stub shows where some of your money is going.

Workers who hold wage or salary jobs of at least 35 hours per week are considered full-time employees.

Some workers are only paid once a month.

A ____ is a sum of money paid to an employee in addition to regular pay, and may be a reward for good performance.

The total amount of money earned during a pay period, less overtime, is net pay.

Employers are not obligated to provide benefits to contract employees.

Part-time workers tend to earn higher wages than full-time workers.

A set amount of money earned by an employee per year or other fixed length of time.

A tax ____ provided in the tax instruction booklet can be used to determine how much income tax you owe for the year.

Each pay stub includes the dates for which you are being paid.

Overtime consists of work in excess of ____ hours per week.

Work for which wages are based on the number of items produced is called ____

If your pay stub doesn't vary, you can determine how much gross and net pay you will earn in a year by...

Direct deposit means that...

A set amount that can be subtracted from taxable income without listing actual expenses.

Contributions to charity many be tax-deductible.

After completing your final calculations, if you have overpaid you will receive a ____.

Employees with a direct deposit payment plan do not receive a pay stub.

Whether you are single or married affects your ___ status.

Gross pay is the amount for which a paycheck is written.

An actual expenses that reduces that amount of income subject to tax.

A pay stub shows all of the following EXCEPT...

A special subminimum wage can be paid to employees who are over 20 years of age.

If too much income tax was withheld from your pay during the year, you will get some of it back as a tax return.

It is a good idea to make sure that more than enough tax is withheld from your paycheck.

Overtime is usually paid at least ____ times the regular rate.

By January 31, your employers will send you Form ____ showing your total earnings for the year and taxes withheld.

A job that pays less but gives you more benefits may give you a better income in the long run.

The portion of your income that is actually subject to income tax is called your ____ income.

Net pay is the same as...

The use of temporary employees offers employers several advantages.

____ are any amounts subtracted from gross pay.

A fixed percentage or amount of profit given to an employee in exchange for making a sale.

FICA stands for Federal Insurance Contributions Act

Gross pay for a salaried employee will usually be the same each pay period.

The Fair Labor Standards Act protects only full-time workers.