Income and Employment

Income and Employment

Tips to remember

Education = Money

• the more education you receive, the higher your lifetime earnings will be.

• for most careers, a *Bachelor's Degree will most likely result in the highest lifetime earnings

Paychecks

• Net pay is the amount of money you're paid after all taxes and *deductions are taken out of your paycheck

• Possible *taxes or deductions that they may show up on your paycheck are Federal income tax, contributions to retirement savings, and *FICA

Paychecks - Taxes

• The *W-4 tax form is used to tell your employer how much *federal income taxes to withhold from your paychecks to send to the IRS.

• A *W-2 form is a form that tells you how much taxes you've *paid in the last year based on how much you've *earned.

• *Taxes pay for *schools and government departments, roads, and *emergency services, and are often used at the federal, state, and local levels.

JOBS

• The *gig economy is a flexible market that allows you to work *short-term, independent jobs

• To fill out your *1040, you need your W-2, routing and *bank account number, and a record of any other supplemental income.

• When considering a job offer, you should consider how much you're being *paid and any other employee *benefits before you accept the offer

• *Healthcare, *paid time off, disability insurance, and matching contributions to a *retirement account are all types of benefits available from your employer.

Multiple Choice

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ______ available from your employer.

• benefits

• pensions

• deductions

• allowances

Multiple Choice

Your employer sends you a ___ form that tells you how much you've made and how much you've paid in taxes in the last year.

• 1040

• W-2

• W-4

• W-9

Multiple Choice

What is net pay?

• The amount of pay earned for the total number of hours worked.

• The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

• The amount of money you're paid before all taxes and deductions are taken out of your paycheck.

• Your gross pay plus any bonuses.

Multiple Choice

Which of the following is a possible tax or deduction that they may show up on your paycheck?

• Federal income tax

• Contributions to retirement savings

• FICA

• All of the above

Multiple Choice

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.

• TRUE

• FALSE

Multiple Choice

What do you need in order to fill out your 1040?

• Your W-2

• Your routing and bank account number

• A record of any other supplemental income

• All of the above

Multiple Choice

The gig economy offers

• Total availability of employment and labor in the economy.

• Flexible, short-term, and independent jobs.

• An economic system in which assets or services are shared between individuals.

• Migration of workers to high-tech jobs.

Multiple Choice

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.

• TRUE

• FALSE

Multiple Choice

What do taxes pay for?

• Schools, government departments, roads, and emergency services

• privately-owned businesses

• Operation of financial institutions

• None of the above

Multiple Choice

The W-4 tax form is used to ___________.

• tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

• determine how much your gross pay should be

• file your tax return.

• avoid paying income taxes on your paychecks