Payroll and Taxes

Taxes on personal income are used by the federal government to help provide

• national defense and law enforcement

• social programs like food and housing assistance and college grants

• veterans and foreign affairs

• all of the above

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

• W-2

• W-4

• 1099

• 1040

What percent of gross pay is for Medicare tax?

• 5.5%

• 6.2%

• 1.45%

• 7.65%

What is the total percent of gross pay taken out for FICA?

• 7.65%

• 1.45%

• 6.2%

• it varies

The total amount of earnings before any deductions are taken out

• gross pay

• after-tax income

• net pay

• minimum wage

Who is responsible for filling out a W-4 form?

• you

• your bank

• your employer

• the IRS

The set amount of pay you get per hour of work is known as:

• wage

• salary

• piecework

• commission

The set amount of pay that some employees receive for their work. This amount is divided into equal payments depending on how often the employee gets paid.

• salary

• wage

• commission

• piecework

When an employee earns a percentage off of his or her sale, it is considered ______.

• commission

• wage

• salary

• bonus

Billy receives payment for each pillow that he stuffs and sews together. His payment is considered ______.

• piecework

• commission

• wage

• salary