FL Unit 2: Careers & Income

The Internal Revenue Service (IRS) is the federal government agency responsible for:

• Tax collection and tax law enforcement

• Providing service to help fill out your tax forms

• Providing responsible loans to needy people

What is the difference between gross pay and net pay?

• Gross pay comes from dirty jobs like sanitation & janitorial services

• Net pay is your pay after deductions; gross pay is before

• Gross pay is your pay after deductions; net pay is before.

• Net pay is the signing bonus you receive at your job

This tax pays for benefits that workers & families receive for either Social Security/Medicare.

• Excise Tax

• Sales Tax

• Federal Insurance Contribution Act (FICA) Tax

• Garnishment Tax

Are deductions added or subtracted from income?

• Added

• Subtracted

When thinking about a career which of the following should you do?

• Take an interest and skills survey to get a feel for what fields might be best options for you.

• Research the average salary and job market projections for your given career.

• Research the education/licensure requirements for your potential career.

• All of the above

A common theme in career fields that are growing are:

• They do not require more than a high school education.

• They are often in the medical or technology fields.

• The jobs have not been created yet.

• The jobs often require PhD’s.

The W-4 tax form is used to ___________.

• determine how much your gross pay should be

• file your tax return.

• tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

• avoid paying income taxes on your paychecks

Earned income could include all of the following EXCEPT:

• Annual bonuses

• Commission

• Company paid health insurance

• Tips

Which of the following is not a deduction taken out of your paycheck?

• State or local taxes

• Union dues

• FICA (Social Security/Medicare)

• Sick days

What is a 529 plan?

• Retirement Account

• Savings Account

• College investment plan

• Roth IRA