1
An increase in pay
what is a raise
tax rate increases for higher income levels
what is progressive tax
Net pay is gross pay minus
deductions
social security and medicare are known as
FICA
In addition to gross pay, what two factors determine the net value of a job?
Employee benefits and job expenses.
deduction from paycheck for federal income tax
tax rate that is the same for everyone regardless of income level
flat rate tax
which tax (social security or medicare) has a cap
social security
Social security has a tax rate of
6.2%
a flexible work schedule is considered a what
nonmonetary value
form used to calculate and claim withholding allowances
W-4
Jim earns $47,500 annually, how much does he pay towards social security?
$2945
Anything that subtracts from gross pay is called
deduction
Medicare has a tax rate of
1.45%
Jake gets a job offer which pays $16 an hour for a 40 hour workweek. Annual benefits include $4,000 for health insurance, $1,000 for dental insurance, and $2,000 for tuition reimbursement. Job expenses will be $100 monthly for parking. What is the net annual value of the job?
$39,080.00
Paige earns $14.50 per hour and works 36 hours a week. How much is her weekly paycheck?
$522
Jorge earns $78,750 annually, how much does he pay in FICA taxes
$6,024.38
Jazmin earns $29,600 annually and receives health insurance benefits worth $5,400. What is the total annual value of her job?
$35,000.00
Identify three factors that determine how much money is withheld from your paycheck for federal tax.
Marital status, income level, and the number of withholding allowances.
Denton earns $17.20 an hour and works 40 hours a week. He gets a 4.0% pay raise. What will be his new weekly earnings?
$715.52
Jasmin earns $12.75 a hour and works 30 hours a week. How much will she earn in a month?
$1530
Why is it better to withhold money for employee-paid benefits before taxes are calculated rather than after taxes are calculated?
that money is not taxed. Withholdings before taxes result in tax savings.
Jazmin earns $29,600 annually and receives health insurance benefits worth $5,400. Her annual job expenses for travel and parking are $3,000. What is the net annual value of her job?
$32,000.00
Patty is in the 15% federal tax bracket. Last year $4,500 was deducted from her paychecks for health insurance before tax. What was her tax savings?
$675.00
Jay earns $58,100 annually. What is his FICA tax (at 6.2% for Social Security and 1.45% for Medicare)?
$4,444.65