Payroll
Taxes
Credits & Deductions
Forms
Random
100
Name 2 common MANDATORY payroll deductions!
1) Federal Income Taxes
2) FICA SS
3) FICA Med
100
What makes up the greatest share of STATE spending?
Education and Healthcare
100
Why does the government offer us credits and deductions instead of just making us pay the whole bill for our taxes?
They try to incentivize us to do certain types of activities by attaching deductions and credits to them (ie: buy a house, go to college, etc)
100
What could cause someone to receive a 1099 form?
Any time they have a second form of income OR if they are doing contract work.
100
Explain the concepts of domain and range! Then explain one common restriction we would put on them in real life situations.
Domain is the set of all input values for a function. Range is the set of all matching output values. Common restrictions include negatives, fractions, and maximums due to real life limits.
200
What is the difference between being a salary worker and being a wage worker?
Salary workers are paid a set amount that is not based on the hours they work. Wage workers are paid per hour they are clocked in.
200
What is the difference between marginal and effective tax rates?
The difference is that a marginal rate is the highest rate of taxes you fall into, effective taxes is the actual percentage you pay across brackets.
200
What is the difference between a standard deduction and an itemized deduction?
Everyone can take the standard deduction but some people can add up smaller deductions to get a larger total deduction. You CANNOT take both.
200
When is the latest date you should expect to get a W-2 form?
January 31st
200
Given the function f(x)= -4x+7, evaluate f(2)
f(2)=-1
300
What is the difference between net and gross pay?
Gross pay is the entire amount you made, net pay is what you take home after taxes and voluntary deductions.
300
Carl just received his W-2. How much did he pay in Federal taxes?
$37.73
300
Explain what each deduction on this paystub means!
FICA med tax is a federal tax to fund Medicare
FICA SS tax is a federal tax to fund Social Security program
FED Tax is a federal income tax
UT ST Tax is a Utah state tax (Carl must live in Utah)
300
When should you fill out a W-4 form?
Any time you start a new job or have a change in status like a new dependent in your family or you get married.
300
Explain the difference between the following:
Progressive Tax Rates
Regressive Tax Rates
Proportional Tax Rates
Progressive taxes get larger as a person makes more money
Regressive taxes get smaller as a person makes more money
Proportional taxes are the same percentage no matter how much a person makes
400
Explain the difference between earned and unearned income!
Earned income is anything you have to work to get. Unearned income is money you are given or win without labor.
400
Every pay period Ms. Ambler pays 10% of her gross pay in taxes and an additional $150 in voluntary 401k contributions. Write an equation that represents her net pay f(x) where x is her gross pay per period.
f(x)= .9x-150
400
How does an employer know how much to withhold from your taxes?
A mixture of information is needed for this. They need to take into consideration your W-4 choices as well as your income and what tax bracket you will fall into to get an estimate of how much should be withheld.
400
What information should you expect to find on a W-2 form?
1) Your total income earned
2) Your taxes paid/withheld
3) Your voluntary deductions (like retirement and healthcare)
4) Misc other info that may not apply to everyone
400
Daniel is going to the store after school to get some groceries for dinner. If his total bill was $43.15 and sales tax is 7.5%, what would his final bill be at the register?
He would need to pay $46.39 total
500
Explain what a voluntary payroll deduction is and name 2 examples.
A voluntary deduction is a deduction that an employee chooses to have taken out of their paycheck. Examples of this include retirement savings and healthcare savings.
500
What is the difference between what Payroll taxes are used to fund vs what Income taxes are used to fund?
Payroll taxes have very specific things they have to be used for (Social Security and Medicare) while Income taxes are a general fund that Congress gets to spend however they want.
500
Janet has calculated her above the line deductions to be $6,500 and has a decision to make about her below the line deductions.
She can take the standard deduction of $12,550 or total her itemized deductions of $3,000 for state taxes, $7,000 for her mortgage interest, and $1,500 for charitable contributions.
Which option is better, and how much would she be able to deduct with that method?
The standard deduction is slightly better and she would be able to deduct $19,050 by combining standard deduction with above the line deductions.
500
What is Carl's effective tax rate on this paystub?
His effective tax rate is 10% (approximately)
500
Josh made $70,000 last year as a nurse placing him in the 22% tax bracket. Will his effective tax rate be greater than, less than, or equal to 22%?
It will be less because he is only paying 22% on the very top section of his income.