Knowledge check

Knowledge check — Unit 2

Five questions on getting paid. You need 75% to pass, and you can retake it as many times as you like.

1. What is the difference between gross and net pay? Gross is before deductions; net is what you actually receive They are the same Net is before taxes Gross excludes overtime

Show the explanation

Gross is hours times rate plus overtime. Net is what remains after every deduction.

2. FICA funds which programs? State roads and schools Social Security and Medicare Unemployment insurance only Your employer’s benefit plan

Show the explanation

Social Security at 6.2% and Medicare at 1.45%, matched by your employer. Fixed and not adjustable.

3. You work two part-time jobs. Which W-4 step matters most? Step 1 only Step 2 — multiple jobs Step 4 — extra income None; each employer handles it

Show the explanation

Without Step 2, each employer withholds as though it is your only income and both under-withhold — so you owe at tax time.

4. What does a large tax refund actually indicate? You earned a bonus You underpaid tax You overpaid during the year and lent the money interest-free You qualified for extra credits

Show the explanation

A refund is your own over-withheld money coming back. Landing near zero is the efficient outcome.

5. Your stub shows 34 hours but you worked 38. What should you do? Wait to see if it corrects itself Raise it with your supervisor or payroll right away Deduct it from next month Nothing — stubs are estimates

Show the explanation

Payroll errors are common and are routinely fixed when raised promptly. They get much harder to resolve months later.