Q 01/05

Which pay schedule do US employers use most often?

A) Weekly

B) Semi-monthly

C) Monthly

D) Biweekly

Answer · why

D) Biweekly

Biweekly: 43% of US private businesses paid that way in a February 2023 federal survey, ahead of weekly at 27%. Paydays 14 days apart mean two months ...

Q 02/05

Which pay schedule gives a worker exactly 24 paychecks a year?

A) Biweekly

B) Semi-monthly

C) Semi-weekly

D) Four-weekly

Answer · why

B) Semi-monthly

Semi-monthly: two fixed paydays a month, such as the 1st and the 15th, make 24. A salary split 24 ways rather than 26 gives slightly bigger checks tha...

Q 03/05

What is the term for an employee's total earnings before any taxes or deductions are taken out?

A) Net pay

B) Take-home pay

C) Base pay

D) Gross pay

Answer · why

D) Gross pay

Gross pay: for hourly workers it counts overtime as well as regular hours. Mortgage lenders weigh your monthly debts against this figure, not against ...

Q 04/05

FICA takes Social Security and Medicare taxes out of US paychecks; what does its 'I' stand for?

A) Insurance

B) Investment

C) Individual

D) Internal

Answer · why

A) Insurance

Insurance: it is the Federal Insurance Contributions Act. The president behind the tax said paying in gave workers 'a legal, moral, and political righ...

Q 05/05

What rate of Social Security tax comes out of a US employee's wages?

A) 3.1%

B) 6.2%

C) 12.4%

D) 25%

Answer · why

B) 6.2%

6.2%: the employer pays a matching 6.2%, but most economists say workers bear nearly all of both halves, because the employer's share comes out of wag...