Pay & Deductions
What is the difference between gross pay and net pay?
Net pay is the amount you see in your bank account
Deductions
What do our taxes fund?
Education, parks, roads, welfare, foreign aid, etc.
What is an example of an incentive?
Discounts, tuition reimbursement, career development
What is a dependent?
Someone who is dependent on more than half of the taxpayers' income
What is the sales tax in Springfield?
10.25% or 11.25%
What is the federal and state minimum wage?
Federal - $7.25
IL - $15
What are "pay as you go" taxes also known as?
Sales tax or regressive tax
What is the definition of a benefit?
Something your employer offers in addition to pay/salary to make the job more attractive
What is a W-2, and when would you receive it from your employer?
Yearly earnings and deductions statement received in January to file taxes
What is the Illinois State income tax?
4.95%
Which pay schedule has 26 pay periods?
Biweekly
What is a progressive tax?
Progressive taxes take a larger share of one's income as the amount of income grows.
The Fair Labor Standards Act enforces what?
Minimum wage, overtime pay, & child labor laws
List one voluntary deduction and one required deduction.
Voluntary: retirement, insurance, union dues, charity
Required: federal tax, income tax, FICA
What is the federal income tax rate?
The federal tax rate varies per person and the amount one makes. The more you make, the more you are taxed.
What does FICA stand for? And what does it include?
Federal Insurance Contributions Act
Social Security & Medicare Tax
This type of tax is added to the consumption of specific goods or services.
Excise tax
What are two things FMLA covers?
birth or adoption, care for spouse, parent, child with an illness, or your own illness
If an underage worker claims exempt on their W-4, should they file a tax return? Why?
No, because they are not paying federal taxes if they selected exempt.
What three government levels make up sales tax?
What is the difference between an exempt and non-exempt employee?
Exempt employees are not entitled to overtime pay while non-exempt employees are.
What does the IRS stand for, and what does it do?
Internal Revenue System - collects taxes & enforces tax laws
To collect unemployment, what are the three requirements one must meet?
Involuntary job loss, earnings threshold, actively seeking employment
What selections does one make on a W-4? And when is it completed?
About 1/3 of the house's value