The Planned Operating Income Is Calculated by ________

question 70

Multiple Choice

The planned operating income is calculated by ________.

• A) dividing net income by tax rate
• B) dividing net income by 1 - tax rate
• C) multiplying net income by tax rate
• D) multiplying net income by 1 - tax rate

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Definitions:

Take-Home Pay

The net amount of income an employee actually receives after deductions such as taxes and retirement contributions.

Voluntary Deductions

Deductions from an employee's paycheck that the employee chooses to have withheld for benefits such as retirement plans, health insurance, and union dues.

Gross Pay

The total earnings of an employee for a payroll period.

FICA Taxes

Taxes required by the Federal Insurance Contributions Act, funding Social Security and Medicare, deducted from employees' paychecks and matched by employers.