Paycheck Deductions

Name:

Class:

Date:

Show your work for each problem.

1.
Which term describes the total amount you earn BEFORE any deductions?
1. a)Net Pay
2. b)Take-home Pay
3. c)Deductions
4. d)Gross Pay
2.
Which of these is a MANDATORY paycheck deduction?
1. a)Social Security tax
2. b)Union dues
3. c)401k retirement contribution
4. d)Health insurance premium
3.
If your gross pay is 1000 dollars and total deductions are 250 dollars, what is your net pay in dollars?
4.
Calculate the Social Security tax (6.2%) on a gross pay of 2000 dollars. Round to the nearest dollar.
5.
Lisa's gross pay is 3500 dollars. Her deductions are: Social Security (6.2%), Medicare (1.45%), Federal Tax (12%). What is her net pay?
1. a)2707.75 dollars
2. b)2812.25 dollars
3. c)2892.50 dollars
4. d)3000.00 dollars
6.
Mark's gross pay is 4000 dollars and his net pay is 3000 dollars. What percentage of his pay goes to deductions?
7.
Emma earns 2800 dollars gross per month. Calculate her net pay if: Social Security is 6.2%, Medicare is 1.45%, Federal Tax is 15%.
8.
A job pays 48000 dollars per year. With 22% total deductions, what is the monthly net pay? Round to the nearest dollar.
9.
You want a net pay of at least 2500 dollars per month. If total deductions are 20%, what minimum gross pay do you need?
10.
Job A offers 5000 dollars gross with 22% deductions. Job B offers 4500 dollars gross with 15% deductions. Which has higher net pay and by how much?
1. a)They are equal
2. b)Job A by 75 dollars
3. c)Job A by 125 dollars
4. d)Job B by 75 dollars
11.
If your annual gross salary is 60000 dollars and your annual net is 45000 dollars, what is your effective deduction rate as a percentage?
12.
You earn 20 dollars per hour and work 40 hours per week. Calculate your monthly net pay if total deductions are 24%. (Assume 4 weeks per month)
13.
Compare two job offers: Job A pays 55000 dollars/year with benefits costing 200 dollars/month out of pocket. Job B pays 50000 dollars/year with benefits included. Both have 23% tax deductions. Which has higher annual net income?
14.
Why should you budget based on net pay instead of gross pay?
1. a)Net pay is what you actually receive to spend
2. b)Gross pay is always lower
3. c)Net pay never changes
4. d)Deductions are optional
15.
Your biweekly gross pay is 1800 dollars. With 21% total deductions, what is your monthly net pay? (Assume 2 pay periods per month)
16.
You contribute 6% of your gross pay to a 401k (pre-tax). Your gross is 5000 dollars. After the 401k contribution, you pay 20% tax on the remaining amount. What is your net pay?