Calculations
Gross pay is $2500.
Net pay is $2000.
What percent of pay was withheld?
20%
What agency is the federal government's tax collector?
Internal Revenue Service, or IRS
When do you fill out a W4?
When you start a job, when your filing status (married/single) changes, or when your number of dependents changes.
What is the main difference between income tax and payroll tax?
Income tax goes into the general fund, "the government's checkbook". Payroll taxes fund specific programs, like social security and Medicare.
On a graph, some points will be marked with an open circle and others with a closed circle. What is the difference between an open circle and a closed circle?
An open circle indicates that that point is *not* included on the graph; you can get as close to it as you want to but it is not on the graph. A closed circle is on the graph.
Which rational number is the largest?
1/3
25%
420 students out of 1900
half
half (It equals 1/2 or 50%)
What are the 2 largest shares of state spending?
Education and health care
Who must send you a 1099?
Anyone who pays you who is NOT your employer (e.g., your bank sends you a 1099 for the interest you were paid)
Social Security and Medicare are examples of what type of tax?
Payroll taxes
What type of graph would model federal income tax brackets?
Piecewise function
Federal income tax: $1000
State income tax: $400
Social security: $372
Medicare: $87
How much was withheld for FICA?
$459 (FICA includes Social Security and Medicare only)
What are the 2 below-the-line tax deductions
Standard deduction and Itemized deduction. You can take only one.
What form do you complete to "do your taxes"?
1040
What are some common above-the-line tax deductions?
Education, contributing to an IRA/401k/403b, contributing to a health savings account, making energy-saving improvements to your home, alimony
You earn $20/hour and always work at least 10 hours per week. What function would model your pay? What would be the domain and range of that function?
y=20x
domain: x>=10
range: y>=200
32%
What is the difference between wage and salary?
Wages are paid for time worked (dollars per hour), salary is the same amount each paycheck (You earn $60,000/year and get paid $5000 per month, no matter how long you work each month).
By what date is your employer required to send you a W2?
January 31st
What percent of your pay is withheld for social security?
6.2%
You are taxed at 5%, and your W4 says to withhold an ADDITIONAL $100 per paycheck. If x=gross pay, what function models the taxes withheld?
f(x)=.05x+100
Your 1040 shows owed taxes of $2400. Your W2 shows $2420 in taxes withheld/paid. Do you owe money or do you get a refund, and how much?
You get a refund of $20
If you earn $50,000 and are in the 22% tax bracket, why are your income taxes less than $11,000?
22% is the MARGINAL tax rate, not the effective tax rate. Not all of your pay is taxed at the marginal rate.
What is the purpose of the I-9 form?
To prove you are legally allowed to work in the United States
What percent of your pay is withheld for Medicare?
1.45%
Write the ORDERED PAIR that represents f(3)
if f(x)=-x-3
(3, -6)