Income
This type of income stays the same each paycheck, no matter how many hours you work.
What is fixed income?
This type of expense stays the same each month.
What is a fixed expense?
This is the federal tax that funds Social Security and Medicare.
What is FICA?
This is the total amount you earn before any deductions.
What is gross pay?
This is the amount you take home after deductions.
What is net pay?
This type of income changes based on hours worked or commission earned.
What is variable income?
This type of expense changes based on usage or spending habits.
What is a variable expense?
This type of tax deduction helps pay for state-funded programs like roads and schools.
What is state income tax?
If you work 40 hours a week at $12 per hour, what is your weekly gross pay?
What is $480?
If you earn $1,500 gross and have $300 in deductions, what is your net pay?
What is $1,200?
Name one example of variable income.
What is commission, bonuses, or freelance work?
Give one example of a fixed expense.
What is rent, car payment, or insurance?
This tax system means the more money you make, the higher percentage of your income is taxed.
What is the progressive tax system?
If you receive a salary of $36,000 per year, what is your monthly gross pay?
What is $3,000?
If your gross pay is $4,000 per month and your deductions total $1,000, what percentage of your income is deducted?
What is 25%? ($1,000 ÷ $4,000)
If you earn $15 per hour and work 40 hours a week, what is your gross income for one week?
What is $600?
Give one example of a variable expense.
What is groceries, utilities, or entertainment?
If you earn $1,200 per paycheck and your federal income tax rate is 10%, how much is deducted for federal taxes?
What is $120?
If you work 45 hours in a week and earn $20 per hour, including overtime (time and a half for hours over 40), what is your gross pay?
What is $950? (40 × $20 = $800; 5 × $30 = $150)
Name three common paycheck deductions.
What are federal income tax, FICA (Social Security & Medicare), and state income tax?
If you work on commission and earn 5% on $10,000 in sales, how much is your commission?
What is $500?
If you earn $3,000 per month and your fixed expenses total $1,800 while your variable expenses total $900, how much do you have left?
What is $300?
If your paycheck includes 6.2% for Social Security and 1.45% for Medicare, how much FICA is deducted from $2,000?
What is $153? (6.2% of $2,000 = $124, 1.45% of $2,000 = $29)
A commission-based worker earns $500 per week plus 10% of all sales. If they sell $8,000 worth of products, what is their total gross pay?
What is $1,300? ($500 + $800)
Your gross pay is $2,500, and your paycheck shows these deductions: $250 for federal tax, $100 for state tax, and $190 for FICA. What is your net pay?
What is $1,960? ($2,500 - $250 - $100 - $190)