Understanding Deductions Worksheet
A Grade 9 Math worksheet focusing on financial deductions, including tax deductions and their impact on net 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 calculations.
1. A deduction is an amount of money that is from an employee's gross pay.
2. The money an employee takes home after all deductions is called pay.
3. Federal income tax and state income tax are examples of deductions.
4. Contributions to a retirement plan or health insurance premiums are examples of deductions.
5. Which of the following is typically NOT considered a deduction from gross pay?
Social Security Tax
Health Insurance Premium
Rent Payment
401(k) Contribution
6. Sarah earns a gross weekly pay of $800. Her deductions are as follows: Federal Tax: $120, State Tax: $40, Health Insurance: $30. Calculate Sarah's net weekly pay.
7. A higher gross pay always means a higher net pay.
True
False
8. Explain why understanding deductions is important for personal financial planning.