Profits Earned Above a Certain Level and Distributed to All

question 150

Multiple Choice

Profits earned above a certain level and distributed to all employees are ________.

• A) gain-sharing plans
• B) profit-sharing plans
• C) cafeteria plans
• D) wages

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Definitions:

Payroll Deduction

Amounts withheld from an employee's salary by an employer for taxes, benefits, and other legally permitted or voluntary deductions.

Regular Hourly Wage

This is the standard amount of money paid to an employee for each hour of work, excluding overtime rates or bonuses.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been withheld.

Social Security Tax

A mandatory contribution paid by employees and employers to the government, intended to fund the Social Security program that provides benefits for retirees, disabled individuals, and survivors.