AnswersSHS Alt Personal Finance - 2021Sources of Income

Gross Pay vs. Net Pay Answers

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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

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A
B
B
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C
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D
2
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Juanita 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 19% of federal tax, determine if Juanita's net pay is correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY11/17$1,020.00 $107.00 $63.24 $14.79 $20.33$814.64Choose 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.
3

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%
4

Use the following federal tax table for biweekly earnings of a single person to help answer the question below. 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?

Question illustration
A
3
B
4
C
5
D
6
5

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
6

The following federal tax table is for biweekly earnings of a single person. A single person earns a gross biweekly salary of $840 and claims 5 exemptions. How will federal taxes affect his net pay?

Question illustration
A
Federal taxes will not affect the net pay.
B
Net pay will increase $11 from the gross pay.
C
Net pay will decrease $11 from the gross pay.
D
Net pay will decrease $13 from the gross pay.
7

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
8

Selina claims single having one exemption. Her state tax deduction is 21% of her federal tax contribution. Calculate the amount of state tax Selina owes if her gross pay for two weeks is $840. The following federal tax table is for biweekly earnings of a single person.

Question illustration
A
$16.17
B
$16.80
C
$32.34
D
$33.60
9

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 $56Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 19% of his federal tax

A
$73.04
B
$129.04
C
$235.51
D
$273.38
10

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
11

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. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY9/10$856.00 $80.00 $53.07 $12.41 $18.40$692.12Choose 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.
12

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 $56Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 19% of his federal tax

A
$73.04
B
$129.04
C
$235.51
D
$273.38
13

Juanita 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 19% of federal tax, determine if Juanita's net pay is correct. EarningsDeductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH.NET PAY11/17$1,020.00 $107.00 $63.24 $14.79 $20.33$814.64Choose 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.
14

Use the following federal tax table for biweekly earnings of a single person to help answer the question below. 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?

Question illustration
A
3
B
4
C
5
D
6
15

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%
16

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 $92Social Security tax that is 6.2% of his gross payMedicare tax that is 1.45% of his gross paystate tax that is 22% of his federal tax

A
$82.66
B
$129.13
C
$164.01
D
$174.66
17

Use the tax table below to answer the following question. Consider cases where the number of withholding allowances is less than 6. Which will cause the amount of federal income tax withheld to increase?

Question illustration
A
Gross pay stays the same and withholding allowances increase.
B
Gross pay increases by more than $20 and withholding allowances stay the same.
C
Gross pay increases by more than $20 and withholding allowances increase.
D
Gross pay decreases by more than $20 and withholding allowances stay the same.
18

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.

Question illustration
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.
19

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
20

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

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