LCPS



Paychecks and InsuranceDIRECTIONS: Circle the correct answer. Each question is worth 1 point.The most secure method for an employer to pay employees is to use:Direct depositPayroll cardPrinted paycheckIn-store creditWhich of the following is a type of insurance available for purchase to protect you from financial losses?Stock Market LossesHealth Care ExpensesMaintaining the price of your homeCar repairsA pay period can be defined as aMonthly schedule of work responsibilitiesSchedule by which employers pay their employeesDay that the pay check is deliveredLength of working time that is actually taxesThe type of insurance that is the minimum required by law for automobiles is:Medical payment insurancePhysical damage insuranceLiability insuranceUninsured or underinsured motorists insuranceWhat is an employee required to complete when they begin a new job?Form W-2Social Security formForm W-4Medicare formKim’s car is damaged when a tree falls on it. Which coverage will she need in order to replace her car?CollisionLiabilityComprehensiveUnderinsuredNet Income can be defined as the:total amount of money earned before deductions are taken outlength of time for which an employee’s wages are calculatedactual amount of money received in the paychecktotal amount of deductions withheld from the paycheckThe beneficiary of a life insurance policy is the individual who:purchased the policyreceives any proceeds if the insured person diessold the insurance policyis the executor of the insured’s estateInsurance is:an unpredictable event which leads to loss or damagean arrangement between an individual and an insurer to protect the individuala fee paid to the insurer for protection under specified termsuncertainty about a situation’s outcome A dependent is a person who:relies on the taxpayer for financial supportrelies on the government for their Social Security benefit checkpays taxes for all the members of the familydepends on their job for needed financial support to pay their expenses.Disability insurancepays for damage you caused in an automobile accidentreplaces part of your income lost due to illness or injurycovers hospital, surgical, and long term care needsprotects the insured from loss when they are liable for injury to someone else.A disadvantage of payroll cards is:lack of protection if the card is lost or stolenability to connect multiple cards to a single accountnumerous fees that can be charged for using the payroll cardrequirements to have a bank account in order to use the payroll cardPatty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing the renter’s insurance?The property managerPatty and EmmaThe building managerGuest who visit Patty and EmmaThe government agency responsible for collecting federal taxes is the :United States CongressSocial Security OfficeInternal Revenue ServiceThe Justice System Renter’s insurance is not required but is a good idea because:The renter would be liable for their possessions if the rental unit caught on fireThe landlord’s insurance does not cover the renter’s personal possessionsLandlords do not need to carry insurance policies that replace the tenant’s propertyAll of the aboveFederal and State Income Tax are paid on:Both unearned and earned incomeEarned income onlyUnearned income onlyThe amount calculated for FICA during each pay periodTiffany was recently involved in a vehicle accident. In order to get her care fixed, her insurance company is requiring her to pay the first $500 of the repair bill because:She did not call her agent and report the accident quickly enoughHer policy’s deductible is $500She will be reimbursed by the insurance company laterThe cost of the repairs is higher than her policy coversAustin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176.00. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?Austin calculated the hours he worked without deducting the hours he spent doing on-the-job training.Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.Austin neglected to deduct the amount required to pay income and payroll taxes.Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.It is recommended that an individual purchase life insurance when the:Individual has dependentsIndividual reaches the age of 50Individual flies in an airplaneIndividual gets their first jobAnother name for Regulation E is:Internal Revenue ServiceElectronic Fund Transfer ActAllowancesEmployment Eligibility FormThe government agency that writes the tax laws is:Internal Revenue ServiceSocial Security AdministrationFICAUnited States CongressEmployees are paid by which methodDirect DepositPayroll CardPaper CheckAll of the aboveWhich of the following best describes the benefits of having insurance?The policyholder may become better off financially if an accident occurs.Insurance combined with emergency savings provides a sense of financial security and peace of mindThe policyholder no longer has to worry about paying for financial losses resulting from an accident because all risk of financial loss is transferred to the insurance company.It is required by law to purchase all types of insurance, so the benefits do not matter. Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda?Amanda must pay the insurance premiums to keep the policy in effect.Amanda will receive the amount of the life insurance if Eric dies.Amanda will receive a commission for selling Eric his life insurance policy.Amanda is required to serve as the executor of Eric’s estate.What is the difference between property and liability insurance?Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person.The difference between property and liability insurance depends on the specific insurance policy purchased.The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased.Jason has two young children that he financially supports on his own. Jason is worried that he will become injured and unable work. If this happened he would lose his income and therefore, his ability to support his children. What type of insurance would you recommend Jason purchase to cover this risk?Renter’s insuranceLife insuranceHealth InsuranceDisability InsuranceJoanna breaks her arm and goes to the hospital to treat the injury. Which type of insurance would help cover the costs of her medical bills?Collision insuranceLife insuranceHealth InsuranceDisability InsuranceIf a person drives an automobile, they are required by law to have some level of automobile liability insurance. In which situation would this type of policy protect the policyholder?James hits a deer while driving to work on a foggy morning, killing the deer and causing $2000 in damage to his car.James backed into a vehicle in the grocery store parking lot and caused $3000 in damages to the other vehicle.An uninsured driver ran a stoplight, hit James’ car, and caused $2000 in damages to James car and $300 in damage to his own vehicle.James’ car was in the parking lot at work during a severe hailstorm where $2000 damage was done to his vehicle.USE THE FOLLOWING SCENARIO FOR QUESTIONS 29 AND 30.Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings, $33.21 into state withholdings, and $42.05 into FICA,What is Bob’s gross pay on his paycheck?$501.66$320.00$576.92$640.00What is Bob’s net pay on his paycheck?$501.66$363.32$576.92$640.00DIRECTIONS: MATCH THE FOLLOWING TERM ON THE RIGHT WITH ITS DEFINITION ON THE LEFT. EACH QUESTION IS WORTH 1 POINT.E____The length of time for which an employee’s wages are calculatedYear-to-DateG____Used to determine the amount of federal taxes withheld from a paycheck.Social SecurityJ____The amount of money subtracted or deducted from the gross pay earned in a pay period.MedicareB____Nation’s Retirement ProgramPayroll CardD____Payment method that electronically carries the balance of the employee’s net payPay PeriodC____The Nation’s Health Care Policy for the elderly and disabledNet PayA____Totals all of the deductions that have been withheld from an individual’s paycheck from January 1 to the last day of the pay period indicated on the paycheck stub.AllowancesF____The amount of money left after all deductions have been taken from the gross pay earned in a pay period.MedicalH____The amount taken from the employee’s paycheck for medical benefits.Printed PaycheckK____The amount required by law for employers to withhold from earned wages to pay taxes.DeductionsI____Payment method that is least secure.Federal Withholding Tax DIRECTIONS: MATCH THE FOLLOWING TERM ON THE RIGHT WITH ITS DEFINITION ON THE LEFT. EACH QUESTION IS WORTH 1 POINT.D____Amount paid out of pocket by policyholder for the initial portion of a loss before the insurance company pays.RiskF____Protection for a dwelling against perils like fire and lightning.PolicyholderA____Accident, theft, damage, destroyed, unexpected.LifeB____Consumer who purchased the policy.DeductibleI____Fee paid to the insurer to be covered under specified terms.PolicyC____Unnecessary insurance for high school participants with no financial dependentsHomeowner’sE____Contract between the individual and an insurer specifying the terms of the insurance.MedicalG____Many high school participants are covered under their parents for this type of insurance.BeneficiaryH____Title of people receiving money from a life insurance policy after the insured person dies.PremiumDIRECTIONS: ANSWER THE FOLLOWING QUESTIONS BY WRITING A SHORT ANSWER.EXPLAIN the difference between homeowner’s insurance and renters insurance AND identify when each would be used. (4 points)Is insurance important? Support your answer with at least TWO reasons. (2 points)Approximately what percentage of a person’s paycheck s deducted? (1 points)Mary earns $60,000 per year and is paid every two weeks. How much is her gross pay every pay period. Her federal tax is $128.64, state tax is $91.23, FICA is $78.77. She does not have medical benefits but does save $100 for a retirement plan. (3 points) ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download