Wants vs Needs
Is food a want or a need?
What is gross pay?
The amount of money you make before tax reductions
Retirement plans, deductions.
What is taxable?
All income (salary, wage, tip, commission)
Interest on savings accounts, bonds, etc.
Dividends and capital gains
Gambling winnings
Determines the percentage of taxes that will be taken out of your paycheck.
Is this the correct def of want: Something you must have
No
What is net pay?
The amount of money you take home after tax reductions.
What is a 401k?
Retirement savings plan sponsored by an employer:
No
What is a I9 form
Proves you are eligible to work in the United States.
What is a basic need?
Things you need to survive
What is the federal minimum wage?
Federal is $7.25 per hour but many states are higher.
What happens if you switch job when you have a 401 (k)?
If you switch jobs, you should rollover your 401(k) into a Roth IRA or the new company's retirement plan.
Is medicare taxes a voluntary or mandatory deduction?
Mandatory
What is a W2 form
Filled out by employer. Shows your taxable income.
Needs for individual consumers for individual situations
What is the overtime pay rate?
Overtime pay rate is at least 1.5 times the regular pay.
Employer funded plan. The employee receives regular payments in retirement
What is excise tax?
Taxes required on specific goods or services like fuel, tobacco, and alcohol. To discourage buying products like these.
What is a 1040 form
Individual taxpayers use to file their annual income tax returns.
Is shelter a basic need or consumer need?
Basic
Max worked 32 hours last week and his hourly rate is $8.75. Max had federal income tax deducted from his paycheck at a rate of 10%. What is his net pay?
$252
What is a Both IRA (individual retirement plan)
Person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59.5 are tax-free.
What is Tax avoidance vs tax evasion
Reducing your taxes by claiming legitimate adjustments, tax deductions, and credits vs Failing to declare all income or falsifying deductions, adjustments, or credits.
Yes