Forms and Function
This form is completed by an employee to tell their employer how much federal tax to withhold from their paycheck.
Form W-4
This is the term for your total pay before any taxes or insurance are taken out.
Gross Pay
This term refers to the money an employer takes out of an employee's pay to send directly to the government.
Withholding
This is the standard calendar date when federal tax returns are usually due each year.
April 15th
How many hearts does an octopus have?
3
Explain why it is vital for a new employee to fill out their W-4 accurately, and name one consequence of providing incorrect information.
Ensures the correct amount of tax is taken out.
Consequences include owing the IRS money, paying penalties, or having a much smaller paycheck than expected.
This document is used by every person who works in the U.S. to prove they are legally eligible for employment.
The I-9
Often called "take-home pay," this is the amount of money you actually get to keep after all deductions.
Net Pay
Social Security and this other healthcare-related tax are both typically withheld from your paycheck.
Medicare
If you pay more in taxes throughout the year than you actually owe, the IRS will send you one of these.
A Refund
Which video game character is blue and runs really fast?
Sonic the Hedgehog
At the end of the year, your employer sends you this form to report your total annual earnings and the taxes already paid.
The W-2
If you earn $10/hr and work 40 hours, but have $80 in total withholdings, what is your net pay?
$320 ($400 Gross - $80 Withholdings = $320 Net)
Unlike some other taxes, Social Security is unique because it is paid by both the employee and this other entity.
Employer
If you do not have enough money withheld from your checks during the year, you will likely face this situation at tax time.
You will owe the IRS more money
Which mammal is the only one that is actually capable of true flight?
A Bat
Most Americans use this specific form once a year to actually file their federal income tax return with the IRS.
The 1040
This tax, which funds retirement for current seniors, is currently withheld from employee paychecks at a rate of approximately 6.2%.
Social Security
On a standard paystub, money paid to the government or for benefits is listed under this specific section.
Deductions
These two specific taxes are withheld to fund benefits for retirees and the elderly. (FICA)
Social Security and Medicare
What is the only letter in the alphabet that does not appear in any of the 50 U.S. state names?
Q
While a W-2 summarizes your whole year, you should look at this document to see your gross pay and specific deductions for a single pay period.
Your Pay Stub
Abigail earns $10/hr and works 20 hours. She also receives $50 in tips. If her total deductions are $40, what is her final net pay?
$210 (20 hrs × $10 = $200 wages; $200 wages + $50 tips = $250 Gross; $250 - $40 deductions = $210 Net)
In tax terms, this is a person (like a child or relative) that you support financially.
Dependant
Failing to file your taxes can lead to missing out on a refund or being forced to pay these extra financial charges.
Penalties
What is the only NFL team that has a helmet in their helmet logo?
Las Vegas Raiders