Grade 10 Financial Literacy: Deductions
This worksheet covers key concepts related to deductions in financial literacy for grade 10 students, including types of deductions and their impact on net income.
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Standards
Grade 10 Financial Literacy: Deductions
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Read each question carefully and answer to the best of your ability. Show all your work for calculation questions.
1. Which of the following is NOT typically considered a mandatory payroll deduction?
Federal Income Tax
State Income Tax
Health Insurance Premiums
Social Security Tax
2. Gross pay refers to:
The amount received after deductions
The total earnings before any deductions
Only salary, excluding bonuses
Money paid for overtime hours
3. The amount of money an employee takes home after all deductions is called .
4. Social Security and Medicare taxes are collectively known as taxes.
5. All deductions from an employee's paycheck are optional.
True
False
6. A higher number of allowances claimed on a W-4 form will generally result in less federal income tax being withheld from each paycheck.
True
False
7. Explain the difference between gross pay and net pay.
8. List three common types of voluntary deductions an employee might choose to have taken from their paycheck.
9. Sarah earns a gross weekly salary of $850. Her deductions are as follows: Federal Income Tax (12%), State Income Tax (4%), Social Security (6.2%), Medicare (1.45%), and Health Insurance ($35). Calculate Sarah's net weekly pay.
Show your work: