Financial Literacy Chapter 3

The federal government levies a tax on personal income to provide for 

• national defense and law enforcement
• veterans and foreign affairs
• social programs like food and housing assistance and college grants
• All answers shown

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.1

CCSS.RL.8.1

CCSS.RL.9-10.2

FICA (Federal Insurance Contributions Act) taxes provide benefits for retirees. Another name for FICA is Social Security.

• true
• false

Which form tells an employer how much to deduct for taxes?

• W2
• W4
• 1099
• 1040

What is the purpose of the form W4?

• It is used to show interest income.
• It is used to complete your yearly tax return.
• To help employers compute the amount of income tax to withhold
• It shows the date you were hired.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

As an employee, you can decide when to pay your payroll taxes.

• true
• false

What percent of gross pay is Medicare tax?

• it varies
• 1.45%
• 6.2%
• 7.65%

Tags

CCSS.6.RP.A.3C

What percent of gross are payroll taxes (social security + medicare)?

• it varies
• 1.45%
• 6.2%
• 7.65%

Tags

CCSS.6.RP.A.3C

What percent of gross pay is federal income tax?

• it varies
• 1.45%
• 6.2%
• 7.65%

Determines the amount of federal withholding tax from an employee's paycheck

• Taxation Form
• I9 Form
• W4 Form
• Deduction Form

The total amount of earnings before any deductions are taken out

• Gross Pay
• Net Pay
• After-tax Income
• Yucky Pay