Review Bell Ringer

Front

What is the Social Security tax rate for employees?

Back

6.2%

Front

How do you calculate annual earnings from a bi-weekly salary?

Back

Multiply the bi-weekly salary by 26 (the number of pay periods in a year).

Front

What is the Medicare tax rate for employees?

Back

1.45% of gross income.

Front

How do you determine weekly earnings from an annual salary?

Back

Divide the annual salary by 52 (the number of weeks in a year).

Front

What is the formula to calculate the amount of Social Security tax paid annually?

Back

Annual Salary x 6.2%.

Front

If an employee earns $48,000 annually, how much do they pay in Social Security taxes?

Back

$2,976.00.

Front

What is the relationship between taxable income and federal tax withheld?

Back

Taxable income is the amount on which federal taxes are calculated, while federal tax withheld is the amount taken out of paychecks for taxes.

Front

How do you determine if a taxpayer is eligible for a refund?

Back

If the federal tax withheld is greater than the calculated tax liability.

Front

What is the significance of the tax table in determining tax liability?

Back

The tax table provides the rates and brackets used to calculate the amount of tax owed based on taxable income.

Front

How do you calculate gross annual salary from Medicare tax paid?

Back

Divide the Medicare tax paid by 1.45%.