Beginner Course · Lesson 5 Assessment
Assessment: Your First Paycheck: Understanding Take-Home Pay
Check what you understood from Lesson 5 and apply it to real life.
Knowledge Check
1. Maya works 20 hours at $11 per hour. What is her gross pay?
A. $180
B. $200
C. $220
D. $242
2. Which number should you use when building a budget?
A. Gross pay
B. Net pay
C. Hourly wage
D. The highest paycheck you have ever received
3. Social Security and Medicare together are commonly called FICA. What is the usual employee percentage?
A. 5.0%
B. 6.2%
C. 7.65%
D. 12.0%
4. A student athlete receives $800 from an NIL deal and no taxes are withheld. What should they understand?
A. NIL income is always tax-free.
B. The brand already handled all tax responsibilities.
C. They may need to set aside money for taxes.
D. Taxes only matter for adults.
5. Alex’s gross pay is $240 and net pay is $188.04. What were Alex’s total deductions?
A. $51.96
B. $48.00
C. $62.00
D. $188.04
Short Answer
6. Explain the difference between gross pay and net pay using a first-job example.
7. Why can budgeting with gross pay create money problems?
Real-World Action Challenge: Paycheck Reality Check
Objective
Use a real or estimated paycheck to understand your actual take-home pay.
Instructions
If you have a job, open your most recent pay stub and find gross pay, deductions, and net pay. Calculate your real take-home hourly rate by dividing net pay by hours worked.
If you do not have a job, choose a realistic first job wage, estimate hours worked, calculate gross pay, and multiply by 0.75, 0.80, and 0.85 to see a range of possible take-home pay.
Reflection Question
What changed when you used estimated net pay instead of gross pay?
Extension Challenge: Compare Two Jobs
Choose two realistic jobs with different wages or schedules.
For each job:
- Calculate weekly gross pay.
- Estimate weekly net pay using 80%.
- Calculate monthly net pay.
- Decide which job is better for your goals.
- Explain one non-money factor that matters, such as transportation, schedule, safety, or sports practice.
Key Takeaways
- Gross pay is before deductions.
- Net pay is what you actually receive.
- Pay stubs help you check whether your paycheck is correct.
- Social Security and Medicare are standard payroll taxes.
- Always budget with net pay.
Answer Key
Check your work only after finishing the assessment.
Question 1
Correct answer: C
Explanation: Gross pay equals hours worked multiplied by hourly rate. 20 × $11 = $220 before deductions.
Question 2
Correct answer: B
Explanation: Net pay is the money that actually reaches your account. A budget built on gross pay includes money you never received.
Question 3
Correct answer: C
Explanation: Social Security is generally 6.2% and Medicare is generally 1.45%. Together, that equals 7.65%.
Question 4
Correct answer: C
Explanation: NIL, freelance, and gig income may not have taxes withheld. Students should keep records and set aside part of the payment.
Question 5
Correct answer: A
Explanation: Total deductions = gross pay − net pay. $240.00 − $188.04 = $51.96.
Question 6
Sample answer: Gross pay is what a worker earns before deductions. Net pay is what they actually receive after taxes and deductions. If a student earns $240 gross but receives $188.04, the $188.04 is the amount they should use in a budget.
Question 7
Sample answer: Gross pay makes it look like you have more money than you actually do. If you plan spending around gross pay, your budget may be short every paycheck because deductions come out first.