Vocabulary Part 1
Mandatory Contributions on individuals or corporations by a governments entity whether local, regional, or national
Taxes
A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare
Federal Insurance Contributions Act (FICA)
Convert 9% into a decimal number
0.09
Convert 8% into a decimal number
0.08
John Butler has an annual gross pay of $52,000. His weekly gross pay is $1000. He is married and claims 1 allowance, his kid. His personal exemptions total up to $3700. The state income tax rate is 6 percent of taxable wages. The company he works for offers him group health insurance with an annual cost of $5000. His company pays for 80 percent of the cost of insurance.
How much is withheld from his weekly paycheck for Federal Income Tax?
$68
Taxes on goods and services purchased by consumers
Sales tax
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers and disabled individuals
Social Security
Convert 6% into a decimal number
0.06
Convert 15% into a decimal number
0.15
John Butler has an annual gross pay of $52,000. His weekly gross pay is $1000. He is married and claims 1 allowance, his kid. His personal exemptions total up to $3700. The state income tax rate is 6 percent of taxable wages. The company he works for offers him group health insurance with an annual cost of $5000. His company pays for 80 percent of the cost of insurance.
How much is withheld from his weekly paycheck for State Income Tax?
$55.73
Tax paid on property owned by an individual or other legal entity such as a corporation
Property Tax
A government-run insurance program that provides healthcare assistance to elderly and disabled Americans
Medicare
How much is the total selling price?
$12
Convert 37 Mills into a decimal number
0.037
John Butler has an annual gross pay of $52,000. His weekly gross pay is $1000. He is married and claims 1 allowance, his kid. His personal exemptions total up to $3700. The state income tax rate is 6 percent of taxable wages. The company he works for offers him group health insurance with an annual cost of $5000. His company pays for 80 percent of the cost of insurance.
How much is withheld from his weekly paycheck for Social Security Taxes and Medicare Taxes?
SS: $62
MC: $14.50
Taxes imposed on the wages, salaries, dividends, interest and other income a person earns throughout the year
Income Tax
The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
1040
John Miller buys a shampoo for $15, conditioner for $10 and soap for $5. The sales tax rate is 4%.
How much is the sales tax?
$1.20
A tax assessor determines the market value of a house is $250,000. The rate of assessment is 25 percent of the market value. The tax rate is 35 mills.
How much is the real estate tax?
$2187.50
John Butler has an annual gross pay of $52,000. His weekly gross pay is $1000. He is married and claims 1 allowance, his kid. His personal exemptions total up to $3700. The state income tax rate is 6 percent of taxable wages. The company he works for offers him group health insurance with an annual cost of $5000. His company pays for 80 percent of the cost of insurance.
How much is withheld from his weekly paycheck for medical insurance?
$19.23
A category that defines the type of tax return an individual will use, primarily based on marital status
Filling Status
A 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 ad taxes withheld from their paycheck
W2
Margaret Miller buys a TV for $500, speakers for $100 and a TV mount for $50. The sales tax rate is 5%.
How much is the total purchase price?
$682.50
A tax assessor determines the market value of a house is $650,000. The rate of assessment is 15 percent of the market value. The tax rate is 25 mills.
How much is the real estate tax?
$2437.50
If the total deductions total up to $234.85 and his weekly gross pay is $1000. How much is his total Weekly Net Pay?
$765.15