Payroll Tax Terms
This is the form that is mailed to you at the end of the year that summarizes your pay and taxes paid.
W2
Suppose you live in Tennessee where the sales tax rate is 7%. Write a function that could be used to find the total paid if you purchase x amount of taxable goods.
f(x)=1.07x
The type of state income tax that Michigan has (regressive, progressive, proportional)
Proportional
Indeed and Ziprecruiter
If your gross annual pay is $149,000, how much will you pay annually for Social Security?
$9238
The amount of money you actually pay tax on
Taxable Income
José is trying to purchase a used car that he has been saving up for. When he gets to the dealership, the car salesperson tells him that there are two deals they have going on that he can choose between. One is a $350 rebate taken off the price of the vehicle, or 3.5% off the listed price. State two functions, one that represents his cost with the rebate and one with the percent discount.
r(x) = x - 350
p(x) = 0.965x
The number of states that do not have income tax
7
What is the purpose of a W4?
To determine how many exemptions/allowances you will take (amount that will not be taxed)
$39.12
What marginal rate is
The percent on the line of the tax table where your taxable income falls
Ms. Sleno works at Starbucks to supplement her teaching. If she can work up to 20 hours per week at $13 per hour, what is the domain and range of this relationship?
0<=h<=20 0<=p<=$260
The state with the highest sales tax
Louisiana
What is an example of a benefit that an employer may offer?
Health insurance, 401K
Your annual salary is $78,500. What will you pay in federal tax for each biweekly paycheck?
$366.56
The way you calculate effective rate
Taxes paid divided by taxable income
If you have $19000 in taxable income and you pay $550 in taxes, what is your effective tax rate to the nearest tenth?
2.9%
Name two states with a flat tax besides Michigan
Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Kentucky, Mississippi, New Hampshire, North Carolina, Pennsylvania, Utah
Name 2 non-mandatory deductions that could be taken out of a paycheck.
Health insurance, union dues, retirement fund, charity, HSA
Your employer offers you health insurance and they cover 65% of the $2500 annual cost? How much do you pay in each weekly paycheck for insurance?
$16.83
What FICA stands for
Federal Insurance Contributions Act
Every pay period, Marcus pays 22% of his earnings in taxes and also contributes $150 to his retirement. Write a function that shows how much Marcus takes home each pay period.
f(x)=0.78x-150
What 2 things make up the biggest share of how State tax dollars are spent?
Education and health care
Give an example of a job that would send you a 1099 at the end of the year.
Contract work
You notice on your biweekly paystub that you paid $54.65 for Medicare. What is your annual salary?
$98000