question

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld:
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
State tax that is 22% of her federal tax
a.
$691.52
b.
$666.21
c.
$636.98
d.
$623.52

answer

d.
$623.52

question

Keeping federal withholding allowances less than 6, in which of the following cases will the amount of federal tax withheld from gross pay increase?
a.
Gross pay stays the same and withholding allowances increase.
b.
Gross pay increases by >$20 and withholding allowances stay the same.
c.
Gross pay increases by >$20 and withholding allowances increase.
d.
Gross pay decreases by >$20 and withholding allowances stay the same.

answer

b.
Gross pay increases by >$20 and withholding allowances stay the same.

question

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?
federal tax of $92
Social Security tax that is 6.2% of his gross pay
Medicare tax that is 1.45% of his gross pay
state tax that is 22% of his federal tax
a.
$82.66
b.
$129.13
c.
$164.01
d.
$174.66

answer

d.
$174.66

question

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay.
a.
$6.49
b.
$8.38
c.
$64.93
d.
$83.78

answer

c.
$64.93

question

Chuck has a gross pay of $815.70. By how much will Chuck's gross pay be reduced if he has the following items withheld?
federal tax of $56
Social Security tax that is 6.2% of his gross pay
Medicare tax that is 1.45% of his gross pay
state tax that is 19% of his federal tax
a.
$73.04
b.
$129.04
c.
$235.51
d.
$273.38

answer

b.
$129.04

question

Which of the following would affect an employee's net pay?
a.
Opting out of their employer's dental insurance plan and putting the money saved into their employer's health insurance plan
b.
Claiming a different number of dependents and thereby reducing their income tax withholdings
c.
Getting a raise and putting the extra money into a 401(k) plan
d.
Receiving a bonus in the form of extra vacation days

answer

b.
Claiming a different number of dependents and thereby reducing their income tax withholdings

question

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay:
federal tax from the following table
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
state tax that is 21% of her federal tax
Determine how Marilyn's net pay will be affected if she increases her federal withholding allowances from 3 to 4.
a.
Her net pay will increase by $15.00.
b.
Her net pay will decrease by $15.00.
c.
Her net pay will increase by $18.15.
d.
Her net pay will decrease by $18.15.

answer

c.
Her net pay will increase by $18.15.

question

The total amount of deductions from an employee's gross pay is $83.20. If the gross pay is $378.18, what percent of their gross pay is being withheld?
a.
21%
b.
22%
c.
23%
d.
24%

answer

b.
22%

question

Use the tax table to help answer the following question.
Luce is single and making $763 biweekly. She claims no federal withholding allowances. If the state tax is 19% of the federal tax, how much in state tax does Luce contribute?
a.
$12.92
b.
$15.13
c.
$15.77
d.
$16.34

answer

d.
$16.34

question

Chloe receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 23% of federal tax, determine if Chloe's net pay is correct.
Choose the true statement below.
a.
The net pay is correct.
b.
The Social Security tax is not correct.
c.
The Medicare tax is not correct.
d.
The state tax is not correct.

answer

a.
The net pay is correct.

question

A statement of an employee's biweekly earnings is given below.
Earnings
Deductions
Week Ended
Regular
FED. SOC. MED STATE
WITH. WITH. CARE. WITH.
NET PAY
9/10
$_____
$98.00 $52.88 $12.37 $22.54
$667.17
What is the employee's gross pay?
a.
$818.05
b.
$830.42
c.
$840.59
d.
$852.96

answer

d.
$852.96

question

Mario has gross biweekly earnings of $784.21. By claiming 1 more withholding allowance, Mario would have $13 more in his take home pay. How many withholding allowances does Mario currently claim?
a.
3
b.
4
c.
5
d.
6

answer

b.
4

question

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld:
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
State tax that is 22% of her federal tax
a.
$691.52
b.
$666.21
c.
$636.98
d.
$623.52

answer

d.
$623.52