Social Security and Medicare — Unit test Answers

Predict how much money can be saved without having a negative actual net income.Monthly BudgetBudgeted AmountActual AmountIncome Wages$1025$675Expenses Rent Utilities Food Cell Phone Savings $300$100$175$75$300$300$100$200$75$____Net Income$75$____a.It is not possible to save any money this month without having a negative actual net income.b.$350 can be saved resulting in an actual net income of $0.c.$200 can be saved resulting in an actual net income of $75.d.Because there is a $75 budgeted net income, that $75 can be put towards savings.

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings. (Soc Sec 6.2%, taxed up to $106,800 and Medicare 1.45%). a. Social Security tax: $77,500.00, Medicare tax: $18,125.00 b. Social Security tax: $7,750.00, Medicare tax: $1,812.50 c. Social Security tax: $66,216.00, Medicare tax: $18,125.00 d. Social Security tax: $6,621.60, Medicare tax: $1,812.50 Please select the best answer from the choices provided

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1500 $1500 Expenses Food Cell Phone Savings Entertainment Car Expenses . $250 $175 $200 $200 $300 . $____ $____ $____ $____ $____ Net Income $375 $____ a. Antonio could keep his budget the same and hope he gets a raise at work. b. Antonio could reduce his monthly entertainment expenses by $100 to help pay the monthly rent. He could take $200 out of savings once for the deposit. c. Antonio could live at his parent’s house for one more month and save his net income. After one month of living at home, he would have enough additional money for the deposit and one year’s rent at the apartment. d. Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit. Please select the best answer from the choices provided

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition.Monthly BudgetBudget ABudget BBudget CBudget DIncome$1250$1000$1125$1500Expenses Rent Utilities Food Cell Phone Savings Personal Items Entertainment Car Expenses Clothing$200$70$150$0$600$120$30$0$20$200$80$250$75$50$10$100$200$0$300$75$160$40$200$25$20$0$300$0$0$400$110$450$50$150$250$50Net Income$60$35$5$40a.Budget Ab.Budget Bc.Budget Cd.Budget D

What is one difference between a vocational school and on-the-job training?

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?

This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget. Monthly Budget Previous Budget Current Budget Income Wages $800 $2400 Expenses Rent Utilities Groceries Savings Bus Pass $300 $60 $200 $100 $30 $300 $60 $250 $150 $30 Net Income $110 $1610 a. Alexa is earning quite a bit more money and her expenses reflect the change in income. b. Alexa is earning quite a bit more money than she was previously. She has worked hard and deserves to spend a lot of money on herself. c. Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account. d. Her increased income should have no effect on her financial decisions. Please select the best answer from the choices provided

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will receive 42% of his average annual salary, what will be his annual Social Security benefit? a. $2,131.92 b. $21,319.20 c. $213,192.00 d. $2,131,920.00 Please select the best answer from the choices provided

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals.Monthly BudgetBudget ABudget BBudget CBudget DIncome$700$700$700$700Expenses - Rent Personal Items Entertainment Savings$200$120$100$250$200$120$300$50$200$120$200$150$200$120$325$25a.Budget Ab.Budget Bc.Budget Cd.Budget D

Which is a kind of federal payroll tax?

Read the scenario.Jasmine is at a store looking for school supplies. She sees a sign offering a "Buy-One-Get-One-Free" (BOGO) deal on notebooks, which are priced at $2 each. In another, there's a 50% off sale on individual notebooks, normally $4, now $2 each. Jasmine gravitates towards the BOGO offer.Why might Jasmine perceive the BOGO offer as more attractive than the 50% off sale?