Type of Taxes/Deductions
Which expenditures make up the greatest share of state spending?
Education and Health Care
What is a W-4?
A form completed by an employee to indicate their tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck
What is the amount of money called BEFORE any taxes or deductions are taken out of an employee's paycheck?
Gross Pay
If an employee worked 18 hours in a given period and earned $12 per hour, what is their gross pay?
$216
June's total gross pay is $596.00 and calculated a total of $102 in deductions. What is her net pay?
$494
What is included in FICA tax?
Social Security and Medicare
What is a W-2?
Form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck
What is the amount of money called AFTER taxes or deductions are taken out of an employee's paycheck?
Net Pay
What is the formula for hourly gross pay?
Hours worked x amount earned = gross pay
What is the formula for net pay?
Gross pay - deductions = net pay
Who pays more taxes in a progressive taxation system?
Those with a higher wealth have pay more in taxes than those with lower wealth.
What is an I-9?
Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States
What are mandatory deductions?
Mandatory payroll deductions are the required wages that are withheld from your paycheck to meet income tax and other required obligations.
What is the formula for taxes?
taxes owed / gross pay = tax (in %)
Federal Withholding Tax: $124.00
SS Tax: $65.00
Medicare Tax: $59.00
State Income Tax: $62.00
What is the total deduction?
$310
List at least 3 common deductions.
Federal Taxes
State Taxes
Social Security
Medicare
Health Insurance
Dental Insurance
FICA
Retirement
What is a 1099?
Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors
What are exemptions?
The set amount of money, per dependent, you can subtract from your taxable income
An employee has a weekly payroll and an annual salary of 28,000. What is their gross income?
$538.461 OR $538.5
Find the Net Pay:
Gross Pay: $800
Federal Tax: $96.80
State Tax: $42.97
Soc. Sec. Tax: $47.20
Medicare: $9.70
Health Ins.:$41.63
$561.7
What are payroll taxes?
Taxes imposed on employers or employees
What is a 1040?
The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
What are voluntary deductions?
Optional choices an employee makes with their employer's agreement.
Clara earns $10.42 per hour. She worked 49 hours this week total. What is her gross pay?
$551.8
An employee finds out that their total amount of deductions adds up to $120.92, if their gross pay is $550, what is their net pay?
$429.08