Understanding Taxes

W-4 Form

100

Who fills out the W-4 form?

You!

200

The W-4 form is used to determine the number of _____, also known as the amount of taxes withheld from your paycheck. 

allowances

300

The more allowances you claim the (more/less) taxes will be withheld. This means you may (owe money/receive a refund) during tax season.

less, owe money 

400

How many allowances can someone claim if they are married with a child?

3

500

If you are single with one job, what is the most appropriate number of allowances to claim?

0

Types of Pay

100

What is the difference between gross pay and net pay?

Gross pay is BEFORE taxes

Net pay is AFTER taxes

200

What is? 

Employee is paid based on sales they have made and usually they keep a percentage of the total value of the sale(s) made

Commission

300

What is?

Supplemental wages an employee earns from customers in addition to regular wages 

Tips 

400

What is? 

This type of pay is normally a fixed amount per year which is then divided by weekly or monthly pay 

Salary 

500

What is? 

Under the Fair Labor Standards Act, employers are required to pay 1.5 times the wages to for work over 40 hours in one work week

Overtime pay

Payroll Deductions

100

Name the deduction: 

amount taken from your paycheck to pay for local and federal taxes

payroll deductions

200

Name a profession that is exempt from paying social security taxes. 

Teachers

300

What is the percentage of FICA taxes that employees pay?

7.65% 

400

When do Social Security benefits begin?

Full retirement age- 65 years 

500

What does FICA stand for? 

Federal Insurance Contribution Act 

Tax Structures

100

What is...

Typically, the dollar value of something such as income, property, or an amount spent for a good or service

Tax Base 

200

What is...

describes how the tax rate changes as the size of the tax base changes

Tax structure 

300

Name the tax structure: 

tax rates increases as the tax bases increases

Progressive Tax 

400

Name the tax structure: 

tax rate stays the same for all tax bases 

Proportional (Flat) Taxes 

500

Name the tax structure: 

The tax rate decreases as the tax base increases

Regressive Tax 

How we pay

100

Name one good/item the federal government places an excise tax on.

Tobacco, Alcohol, Gas, Tires 

200

Property taxes are typically

a. proportional 

b. regressive

c. progressive 

a. proportional

300

Name the sales tax for our local area. 

4% 

400

Income taxes include what two forms? 

Federal Income and State 

500

Income taxes in GA are

a. regressive

b. progressive

c. proportional 

b. progressive