Everfi- Financial Literacy Lesson 2

What is net pay?

• The amount of pay earned for the total number of hours worked.

• The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

• The amount of money you're paid before all taxes and deductions are taken out of your paycheck

• Your gross pay plus any bonuses.

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

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.

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.

How does the government pay for roads, schools, and emergency services?

• They are funded through non-profits.

• They are funded through taxes.

• They are funded through charitable donations.

• None of the above

What do you need in order to fill out your 1040?

• Your W-2

• Your routing and bank account number

• A record of any other supplemental income

• All of the above

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer.

• TRUE

• FALSE

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

What is the gig economy?

• The number of people in the economy who have full-time employment jobs.

• The total availability of employment and labor in the economy.

• An economic system in which assets or services are shared between individuals.

• A flexible market that allows you to work short-term, independent jobs.

How much you're being paid is the only thing you need to consider when considering a job offer.

• TRUE

• FALSE