Everfi_Employment and Taxes_Spring 2023-2024

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

• the lower the score on standardized tests

• the less education

• the higher the score on standardized tests

• the more education

What is the difference between gross and net pay?

• Net pay is a salary and gross pay is from hourly wages.

• Gross and net pay are basically the same things.

• Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

• Gross pay is after taxes are subtracted but net pay is before taxes are taken out.

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• Contributions to retirement savings

• State income tax

• Sales tax

• FICA

The W-4 tax form is used to ___________.

• determine how much your gross pay should be.

• avoid paying income taxes on your paychecks.

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

• file your tax return.

What does the W-2 form tell you?

• How often your employer will be paying you

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

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

• When to file your tax return.

Which of the following statements is true about taxes?

• Taxes are only collected by the federal government.

• Taxes are only collected by state governments.

• Taxes pay toll road fees and office buildings.

• Taxes pay for schools, first responders, and roads.

Each year, you must file ____________________.

• your federal taxes and state taxes if your state requires it

• only your federal taxes since state taxes get filed every other year

• only your state taxes since federal taxes are filed every four years

• your federal, state, county, and town taxes

Tax preparation software can help prepare and file your taxes by _________.

• making an appointment with a tax expert for you

• calculating your taxes based on your savings account balance

• providing you with blank tax forms you can fill out

• posing questions to collect necessary information

Deductions and credits can _______ what you owe in taxes each year.

• share with others

• double

• reduce

• increase

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package?

• FICA

• healthcare insurance

• disability insurance

• matching contributions to a retirement account