Income
What type of income is calculated on an hourly, daily, or piecewage basis?
Wage
What is gross pay?
The amount you earn before taxes and deductions
What tax is added to the price of goods and services?
Sales Tax
What government agency is responsible for collecting income taxes?
IRS - Internal Revenue Services
Why does the government collect taxes?
To generate revenue to pay for government operations, facilities, and services.
What type of income is fixed rate of pay expressed as an annual figure?
Salary
What is net pay?
The amount you actually receive after deductions.
What tax is placed on the value of the home, land, boat, or car?
Property Tax
What is the deadline for filing an income tax return?
April 15
What is called when the government spends more money than it collects?
Deficit spending
A salesperson earns 7% commission on a $31,500.00 car. How much is the commission?
$2,205.00
What four payroll taxes are mandatory deductions?
Social Security, Medicare, Federal, State income taxes
What type of tax is paid directly to the government?
Direct tax
What document does an employer send an employee each year by January 31?
W-2
Name one benefit provided through Social Security.
Retirement, disability, or survivors benefits.
Jessica earns $10.32 per hour and works 45 hours. What is her gross pay?
$490.20
What form determines the deductions taken from your paycheck when you start a new job?
Form W-4
Which type of tax has the effect of imposing a higher tax rate on people with lower incomes?
Regressive Tax
What are the two choices for handling deductions: listing individual deductions or taking the government-set deduction?
Itemizing deductions or taking the standard deduction
What is the difference between mandatory and discretionary government spending?
Mandatory expenditures are commitments the government must pay, while discretionary can be adjusted according to needs and revenues.
Judy earns $0.35 for every tire she makes. If she produces 1,052 tires, what is her gross pay?
$368.20
An employee has $600.00 in gross pay. How much is withheld for Social Security and Medicare?
Total = $45.90
A tax charges everyone the same tax rate regardless of income. What type of tax is this?
Proportional Tax
A student earned income from a job, and taxes were withheld from their paycheck, but their income did not reach the filing requirement. What may they still be eligible to receive?
Any three of sales tax, real estate taxes, personal property taxes, personal income tax, or business income tax.