MAH Understanding Employment Basics

Multiple Choice

What is the purpose of Step 2 in the tax withholding process?

• To ensure proper tax withholding when more than one job is involved in the household.

• To calculate the exact amount of tax refund.

• To determine eligibility for tax deductions.

• To apply for tax credits.

Multiple Choice

Why does Jane check the box in Step 2(c)?

• Because she wants to claim more tax deductions.

• Because her spouse works and they need to account for combined income.

• Because she is self-employed.

• Because she wants to reduce her tax withholding.

Multiple Choice

How much is each qualifying child under 17 worth in dependent credits?

• $1,000

• $2,000

• $3,000

• $4,000

Multiple Choice

If Jane has three children under 17, how much does she write on Step 3 for dependent credits?

• $2,000

• $3,000

• $4,000

• $5,000

Multiple Choice

What filing status ensures lower withholding than "Single" status?

• Head of Household

• Married filing jointly

• Married filing separately

• Qualifying widow(er)

Multiple Choice

What is the purpose of checking the "multiple jobs or spouse works" box?

• To increase tax withholding

• To decrease tax withholding

• To account for combined household income

• To claim additional tax credits

Multiple Choice

What is the purpose of completing Form W-4?

• To apply for a new job

• To calculate state taxes

• To ensure the correct federal income tax is withheld from your pay

• To file your annual tax return

Multiple Choice

Who is eligible for Exempt Status on Form W-4?

• People who owe federal income tax

• People who will not earn enough to owe any federal income tax

• People who have multiple jobs

• People who are married filing jointly

Multiple Choice

Why is Form W-4 important when starting a new job?

• It determines your income tax withholding.

• It summarizes your yearly earnings.

• It replaces your social security information.

• It lets you skip paying taxes.

Multiple Choice

What is the purpose of Form W-2?

• To report your annual income and taxes withheld

• To apply for a new job

• To register for health insurance

• To update your address with the IRS

Multiple Choice

Who typically provides you with a Form W-2?

• Your employer

• The IRS

• Your bank

• Your insurance company

Multiple Choice

What is the maximum number of hours a minor aged 14-15 can work per school day in Pennsylvania?

• 4 hours

• 3 hours

• 5 hours

• 6 hours

Multiple Choice

During school weeks, what is the latest time a minor aged 14-15 can work until in Pennsylvania?

• 8 p.m.

• 6 p.m.

• 7 p.m.

• 9 p.m.