Vocabulary (2 min)
This is the person who works for a business in exchange for wages or salary.
Employee
The form you complete when first hired so your employer knows how much federal tax to withhold.
W-4
Calculate the FICA withholding (7.65%) on a weekly gross pay of $1,000. Show your work.
FICA on $1,000: 1000×0.0765=76.501000
$76.50 withheld
***DOUBLE POINTS***
What does FICA stand for and which two programs does it fund?
Federal Insurance Contributions Act
How many cats does Ms. Kirmse have?
2
***DOUBLE POINTS***
The actual "take-home" pay you receive after all taxes and deductions are removed.
Net Income
The form your employer provides by January 31 summarizing your yearly earnings and taxes withheld.
W-2
If an employee’s gross monthly income is $3,200 and total deductions equal 22% of gross, what is the net monthly pay? Show the calculation.
Deductions 3200×0.22=704
Net 3200−704=$2496
Who is responsible for sending withheld taxes to the government: the employee or the employer?
Employer
What is Ms. Kirmse's favorite color?
Purple
Any amount subtracted from your gross pay (examples: retirement contributions, health insurance).
Deduction
The official "U.S. Individual Income Tax Return" form used to calculate your refund or tax bill.
Form 1040
Sarah’s Gross Income is $1,200.
Deductions: Federal Income Tax $120, FICA $92, Health Insurance $40.
What is Sarah’s Net Income? Show your work.
Total deductions 120+92+40=252
so Net 1200−252=948
The document you fill out when first hired? (Provide the letter and explain.)
A) Form W-4,
B) Form W-2,
C) Form 1040,
D)Form 1099
A - The W-4 form tells your employer what taxes to hold back from your paycheck for tax perposes
What are Ms. Kirmse's Cat's names?
***DOUBLE POINTS*** (For full Names)
Harley Quinn Kirmse
Moon Pie Kirmse
Your total pay before any taxes or insurance are taken out.
Gross Income
Which form tells your employer how many withholding allowances to claim and can be updated when your situation changes?
Form W-4 (withholding allowances / updates)
***DOUBLE POINTS***
Marcus earns $2,500 per pay period. Federal Income Tax is 15% of gross, FICA is 7.65% of gross, Health Insurance is a flat $100. Compute: Federal Income Tax, FICA Tax, Total Deductions, and Net Income. Show all steps.
Federal 2500×0.15=375
FICA 2500×0.0765=191.25
Health $100;
Total deductions 375+191.25+100=666.25375
$666.25
Net Income 2500−666.25=1833.75
$1833.75.
Explain the difference between gross income and net income in one clear sentence.
Gross income is the total money earned (salary/hourly pay) before taxes and deductions, while net income is the remaining "take-home" pay after taxes, insurance, and retirement are taken out.
Essentially, gross is the full amount earned, and net is what you actually keep.
Name one job Ms. Kirmse had before becoming a teacher.
- Worked at a pizza joint
- Worded for City Parks and Rec as a Belayer at a rock climing wall
- Worked at Home Depo in the paint department
- Worked for Department of Rehabilitation services as a Health personal assistant
- Worked at a childrens home
- Worked at NIU's Library circulation desk
- Worked at NIU's Outing center
If you financially support a child or qualifying relative, you may be able to claim them as this on your tax return.
Dependent
***DOUBLE POINTS***
If someone is paid as an independent contractor rather than an employee, which common form records payments (often given instead of a W-2)?
Form 1099
***DOUBLE POINTS***
A worker has a gross annual income of $36,000. If FICA is 7.65% and federal withholding totals 12% of gross, and healthcare premiums are $1,200/year, compute the annual net income. Show step-by-step work.
Annual:
FICA 36000×0.0765=2754
Federal 36000×0.12=4320
Health 1200
Total deductions 2754+4320+1200=$8274
Net 36000−8274=$27726
How much money went unclaimed in 2024 taxes?
over 1 Billion dollars
What year did Ms. Kirmse start teaching?
2009