Taxes and Paychecks Pre Test

Which of the following is the federal bureau which collects taxes and turns the money over to the Treasury Department?

• Congress

• Department of Tax Collection

• Internal Revenue Service

• Executive Department

The IRS is NOT responsible for which of the following?

• Issuing tax refunds

• Collecting Taxes

• Processing Tax Returns

• Promoting economic prosperity

Which of the following is the most common tax on the federal level?

• Sales Tax

• Income Tax

• Property Tax

• Excise Tax

Which of the following entities writes states’ tax laws?

• The president

• Congress

• Each state

• The IRS

Which of the following entities does NOT have the ability to collect taxes on the local level?

• County governments

• City governments

• School districts

• Politicians

Which of the following number of dependents claimed on a W-4 will have the most income tax withholding taken out of your paycheck?

• 0

• 1

• 2

• 3

John’s employer withholds his taxes with every paycheck. However, John is also self-employed and is responsible for paying his taxes on his second income. To make it easier, what might John ask his employer to do for him?

• Take additional taxes out by requesting it on a W-9

• Take additional taxes out by requesting it on a W-4

• Neither, John must pay his own taxes for the income

• Take additional taxes out on a W-4 and W-9

Andrea earns $8 per hour and works 20 hours per week. She receives her paycheck for her hours worked during the week every Friday afternoon. What is her gross pay?

• $80.00

• $131.76

• $144.00

• $160.00

Andrea earns $8 per hour and works 20 hours per week. She receives each week’s paycheck every Friday afternoon. The percentage of Andrea’s gross pay which goes to federal income tax withholding is 15 percent. How much is her check when you subtract her federal income tax withholding from her gross pay?

• $80.00

• $131.76

• $136.00

• $160.00

Andrea earns $8 per hour and works 20 hours per week. She receives each week’s paycheck every Friday afternoon. The percentage of Andrea’s gross pay which goes toward Social Security and Medicare is 7.65 percent of her gross pay. How much is taken out for these taxes from her gross pay?

• $12.24

• $131.76

• $13.76

• $80.00