Income Tax
This is abbreviated as FICA and is the federal payroll tax.
What is Federal Insurance Contribution Act?
Certain income, transactions, or property are entirely free from the obligation to pay specific federal, state, or local taxes.
What is a Tax Exemption?
T of F
A pay stub is the same as a paycheck and I can deposit it at the bank.
False!
A pay stub only has the summary of my paycheck, since the beginning of the calendar year
The monthly (or yearly) amount paid by a policy holder to an insurance company to obtain or maintain an insurance policy.
What is an Insurance Premium?
Money that is Owed or Due
What is debt?
Vary by state, are a percentage that you pay to the state government based on the income you make.
What are State Income Taxes?
This federal department is abbreviated as the IRS
What is the Internal Revenue Service?
The abbreviation for amount paid since the beginning of the year.
What is the YTD Pay?
The amount you pay out-of-pocket before the insurance company steps in.
What is a Deductible?
The yearly cost of borrowing money, essentially the interest rate.
What is the Annual Percentage Rate (APR)
These are the two taxes that fall under FICA.
What is social security and medicare?
This is an example of a Tax Exemption
Charitable Donations,Religious Donations, Educational Donations, Labor Union, Theaters, Science research
Income BEFORE taxes
What is Gross Income?
If you rent an apartment, this insurance covers your belongings inside the unit if they are stolen or damaged.
What is renters insurance?
This type of card charges you interest to borrow money from the bank or store
What is a Credit Card?
If Mr. Best earns a gross monthly salary of $7,200 selling hot dogs.
Given that Social Security Tax is 6.2%, find Mr. Best’s social security tax withholding for the month.
$446.40 withheld for Social Security
Mr. Manka makes a total of $67,000 a year selling hot dogs. He is married, and has two children. His state withholding tax rate is 4.5% of taxable earnings.
Single = $1000
Married = $2000
Each dependent = $700
What is the total amount of Mr. Manka’s personal exemption?
$2000 + $700 + $700 = $3400
This is an employee’s gross earnings minus their personal exemption.
What are Taxable Earnings?
These people go out to visit insurance claims to view their damage
Who is an insurance adjuster?
This type of account is intended for everyday use but usually does not gain interest
What is a checking account?
If Mr. Best earns a gross monthly salary of $7,200 selling hot dogs.
Given that Medicare Tax is 1.45%, find Mr. Best’s medicare tax withholding for the month.
$104.40 for Medicare
Mr. Manka makes a total of $67,000 a year selling hot dogs. His state withholding tax rate is 4.5% of taxable earnings.
Given that his exemptions are $3400, what is his annual state tax withholding? (Hint: there are two steps to this question)
$67,000-$3,400= $63,600
$63,600 x .045 = $2,862
Is the amount of money taken out in taxes in total.
What are Taxes Withheld?
A covered car accident results in $1,000 in damages. If your deductible is $300, this is the amount the insurance company pays.
What is $700 ($1000-$300=$700)
This tracks your trustworthyness to borrow money.
What is a Credit Score?