Vocabulary
What are job expenses?
Gross pay plus employee benefits.
What is total employee benefits?
How much Medicare tax (1.45%) is deducted from $620 in gross wages?
What is $8.99?
An amount of money per person that is free from tax.
What is an exemption?
Gross pay minus deductions.
What is net pay?
Thomas has a 0.5% city tax rate. How much did he owe last year if he had federal taxable income of $45,883?
What is $229.42?
An amount subtracted from gross pay.
What is a deduction?
Total job benefits less job expenses.
What is net job benefits?
How much Social Security tax (6.2%) is deducted from $620 in gross wages?
What is $38.44?
Tax that does not change with the amount of income.
What is a flat tax?
Adjusted gross income (AGI) less deductions and exemptions equals this.
What is taxable income?
Gross pay = $4,000; Take-home pay = $3,000
What is the take-home pay as a percentage?
What is 75%?
When the tax rate gets higher as the taxable income gets larger.
What is a graduated tax system?
Social Security (6.2%) + Medicare (1.45%)
What is the FICA tax (7.65%)?
Salary: $38,500 + 22% in fringe benefits. Job expenses are $500 parking, $5,350 tools and $1,200 certification. What are the net job benefits?
What is $39,920?