EPF Unit 4 Review Taxes & Insurance

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What is the Federal Insurance Contributions Act and how is it used?

Back

FICA is a federal payroll tax that funds Social Security and Medicare benefits.

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What is disposable income?

Back

Disposable income is the amount of money that households have available for spending and saving after income taxes have been deducted.

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What are payroll deductions?

Back

Payroll deductions are amounts taken out of an employee's paycheck.

Front

Why is it important to know and plan for your payroll deductions when you are planning a budget?

Back

To accurately estimate take-home pay and allocate funds for necessary expenses.

Front

What are Social Security taxes and how are they used?

Back

Social Security taxes are deductions from employees' paychecks that fund the Social Security program, which provides retirement, disability, and survivor benefits. These taxes are used to pay current beneficiaries and are invested in special-issue Treasury bonds to earn interest for future payouts.

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What is a W-4 form?

Back

A W-4 form is a form completed by employees to indicate their tax withholding preferences to their employer.

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What is a W-2 form?

Back

A W-2 form is a tax form used by employers to report wages paid to employees and the taxes withheld from them.

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What is a 1040 Individual Income Tax Form?

Back

A standard form used by individuals to file their annual income tax return with the IRS.

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What are the benefits of renters insurance?

Back

Renters insurance provides coverage for personal property, liability protection, additional living expenses, and medical payments to others.

Front

Why would it be important to have life insurance if you have a family?

Back

To provide financial protection for your family in case of your untimely death.