What does FICA stand for?
Federal Insurance Contributions Act
What is filing status used for when completing your federal income tax return?
It helps determine how your income is taxed and what deductions/credits may apply.
What is gross pay?
The total amount of money earned before taxes and other deductions.
What is a household employee?
Someone who is hired to perform work in or around another person’s home.
What is Form I-9 used for?
To verify an employee’s identity and authorization to work in the United States.
What two programs are funded by FICA taxes?
Social Security and Medicare
Name one common filing status.
Single
If you earn $15 per hour and work 10 hours, what is your gross pay?
$150
Give one example of a household employee.
A nanny, housekeeper, or caregiver.
Who completes Form I-9?
Both the employee and employer have responsibilities for completing it.
FICA tax usually come out of an employee’s paycheck?
Yes
What filing status generally applies to someone who is married and files one tax return with their spouse?
Married Filing Jointly
Is gross pay the amount you actually take home?
No. Take-home pay is usually less because of taxes and deductions.
Who is generally responsible for paying a household employee—the employee or the household employer?
The household employer is responsible for certain employment-tax requirements.
When is Form I-9 generally completed?
When someone is hired for employment in the United States.
What is one reason Social Security taxes are collected?
To help fund Social Security benefits.
What filing status may apply to an unmarried person who supports a qualifying person in their household?
Head of Household
What is the difference between gross pay and net pay?
Gross pay is before deductions; net pay is after deductions.
True or False: A person who works in someone’s home can never be considered an employee.
False.
What does an employee use to complete Section 1 of Form I-9?
Information about themselves, including their name, address, and work-authorization information.
If you see Social Security and Medicare taxes taken from your paycheck, what type of tax are they?
FICA taxes
Why is choosing the correct filing status important?
Because it can affect your tax rate, deductions, credits, and tax owed.
You earned $500, but $100 was taken out for taxes and other deductions. What is your net pay?
$400
Why is it important for a household employer to properly classify a worker?
Because different tax and employment responsibilities can apply to employees.
Why is Form I-9 important for employers?
It helps employers verify the identity and employment authorization of their workers.