Understanding Deductions Worksheet
A Grade 8 math worksheet focusing on understanding and calculating various types of deductions from gross income.
Includes
Standards
Understanding Deductions
Name:
Date:
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Read each question carefully and answer to the best of your ability. Show all your work for calculation problems.
1. Money earned before any deductions are taken out is called income.
2. Deductions are amounts of money from your gross pay.
3. The money you take home after all deductions is called pay.
4. Two common types of deductions are and .
5. Gross pay is always less than net pay.
True
False
6. Income tax is a mandatory deduction.
True
False
7. Sarah earned $850 gross pay last week. Her deductions were $120 for federal taxes and $45 for state taxes. What was her net pay?
8. David's gross monthly salary is $3,200. He has the following deductions: Social Security (6.2%), Medicare (1.45%), and health insurance ($150). Calculate his total deductions and his net monthly pay.
9. Which of the following is an example of a voluntary deduction?
Federal Income Tax
Social Security
Retirement Plan Contributions
Medicare
10. If your gross pay is $1,500 and your total deductions are $350, what is your net pay percentage of gross pay (rounded to the nearest whole number)?
77%
23%
65%
80%