Payroll and Tax Flashcard

Front

FICA taxes include:

Back

social security tax

Front

Line 5 on Form W-4 describes "total number of allowances" as:

Back

withholding allowances

Front

Which is an example of a required employer deduction?

Back

social security

Front

The amount of money that tax calculations are based on is called:

Back

taxable income

Front

Which form is used for a corporation filing taxes?

Back

form 1120

Front

Define the term 'tax credit'.

Back

A direct reduction in tax liability, not dependent on the taxpayer's tax rate

Front

Define the term 'pay stub'.

Back

A document an employee receives listing payment details

Front

Income tax

Back

A tax on individual earnings from various sources

Front

Net pay

Back

The amount of money an employee takes home after all deductions.

Front

For a taxpayer using Form 1040-EZ, to determine if an individual has earned a refund or owes taxes, one must:

Back

Check the total tax payments and compare it with the total tax liability