Sources of Income
What type of income is a commission?
Earned
What type of tax is applied to the money generated by an individual or business?
Income Tax
What is another term for total earnings?
Gross pay
Which form is used by employers to report an employee's annual compensation and tax-related withholding amounts?
W-2
What decade was the band Aerosmith formed?
1970s
How is overtime pay calculated according to the Fair Labor Standards Act (FLSA)?
At least 50% more than an employee’s normal wage.
What is a progressive tax system?
A tax system where tax rates increase as income increases
What 3 pieces of information does a pay stub typically include?
Total earnings, deductions, and net pay
Which form is used to report interest income from banks?
Form 1099-INT
What is the name of the New York coffee shop in Friends?
Central Perk
Which form of income is primarily received from government programs?
Transfer Payments
What does FICA stand for?
Federal Insurance Contributions Act
What is the purpose of a Form W-4?
To claim withholding allowances
Which filing status is used by single individuals who support a dependent and pay more than half the cost of keeping up a home?
Head of Household
What English city did The Beatles originate from?
Liverpool
Which type of income would a person receive from renting out an apartment?
Passive Income
What is the total FICA tax rate for self-employed individuals?
15.3%
What is the equation to fine the effective tax rate?
The taxes owed divided by gross income
What does Adjusted Gross Income (AGI) represent?
A taxpayer’s total income for the year minus specific eligible deductions
What is the British equivalent of the Oscars/Academy Awards called?
The BAFTAs (British Academy of Film and Television Arts)
If a person earns a salary of $75,000 per year and is paid semi-monthly, how much is paid each pay period?
3,125.00
Which tax is only imposed on employers and not employees?
Unemployment tax
Which deduction is calculated first when determining taxable income?
Pre-tax deductions
What type of income is reported on Form 1099-NEC?
Payments made to non-employees for services
What year was Netflix founded?
1997