Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

Practice this question and more.

Which of the following is not typically deducted from an employee’s paycheck?

Federal Taxes
Health Insurance
Overtime Pay
Retirement Contributions

The correct answer is: Overtime Pay

Overtime pay is an addition to an employee's earnings based on the number of hours worked beyond the standard workweek. It is considered compensation rather than a deduction from the paycheck. When employees work more than the federally stipulated 40 hours in a week, they are entitled to receive overtime pay, which should appear as an increase in their gross earnings. On the other hand, federal taxes, health insurance premiums, and retirement contributions are all deductions from an employee's paycheck. Federal taxes are mandatory contributions that reduce the employee's take-home pay, health insurance is often a benefit that comes with a cost deducted from pay, and retirement contributions are amounts that employees set aside for future savings, also deducted from their gross pay before taxes. Therefore, overtime pay stands out as it represents additional income rather than a deduction.