EverFi Financial Literacy Lesson 2: Income and Employment

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

• TRUE

• FALSE

For most careers, which degree will most likely result in the highest lifetime earnings?

• High school degree

• Associate's degree

• Licensure or certification

• Bachelor's Degree

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called

________.

• Gross pay

• Net pay

• Total pay

• Year-to-date pay

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

Which of the following is NOT a possible tax or deduction that could show up on your paycheck?

• State income tax

• Contributions to retirement savings

• FICA

• Sales tax

Which of the following is NOT a possible tax or deduction that could come out of your paycheck?

• FICA

• Overtime pay

• Federal income tax

• Contributions to retirement savings

What is the purpose of the W-4 form?

• To file your tax return.

• To determine how much your gross pay should be.

• To inform your employer of how much federal income tax to withhold from your paychecks.

• To avoid paying income taxes on your paychecks.

When you start a new job, you fill out a W-4 form to _________.

• determine how much your gross pay should be.

• file your tax return.

• avoid paying income taxes on your paychecks.

• to determine how much federal income tax your employer should withhold from your paychecks.

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year.

• When to file your tax return.

• How much federal income tax your employer will withhold from your paycheck.

• How often your employer will be paying you.

The W-2 form is a form that tells you _______.

• how often you will be paid.

• how much taxes you owe to the federal government.

• ow much taxes to withhold from your paycheck.

• how much taxes you've paid in the last year based on how much you've earned.