2.1 Fractions & Tax Dollars Application

Taxes and Taxation

https://youtu.be/tzTRRXELuaE

According to the video, which entity would most likely collect taxes to fund Leon County Public Schools?

• State

• Federal

• Local

• Universal

Dynasti is an employee of Swifty Car Wash, Inc in their corporate legal department. Her annual salary is $114,800.

How much will Dynasti pay in Social Security taxes this year? Express your answer in US dollars to the nearest cent.

Dynasti is an employee of Swifty Car Wash, Inc in their corporate legal department. Her annual salary is $114,800.

How much will Swifty Car Wash contribute to Medicare for Dynasti’s salary? Express your answer in US dollars to the nearest cent.

Nolan works part-time at a movie theater making his state’s minimum wage of $10.10 per hour. He receives a paycheck every 2 weeks.

If he works 20 hours over the course of the first two weeks in February, how much should he expect to have taken out of his paycheck for payroll taxes? Express your answer in US dollars to the nearest cent.

gross pay: wages before deductions

deductions: amount subtracted from gross pay

Another term for take-home pay is net pay. How is an employee's net-pay calculated?

• net pay = gross pay - deductions

• net pay = gross pay + deductions

• net pay = gross pay (deductions)

• net pay = gross pay - bonus + deductions

Nolan works part-time at a movie theater making his state’s minimum wage of $10.10 per hour. He receives a paycheck every 2 weeks.

The second half of February is much busier with local schools closed for the entire week of Presidents Day, and Nolan’s boss schedules him for 27 hours instead. Other than payroll taxes, Nolan doesn’t have any other money withheld from his paycheck. How much can he expect his take-home pay to be? Note: Take-home pay = gross earnings - deductions. Express your answer in US dollars to the nearest cent.

In addition to full-time job at Swifty Car Wash, Dynasti also has a side-gig selling elaborate, expensive birthday cakes to customers within a 50-mile radius of her home. She’s using her profits to pay down law school loans more quickly.

 

In June, one of her busiest months, Dynasti sells 7 cakes, collecting a total of $795 from her customers. How much does she need to pay for her SECA taxes? Express your answer in US dollars to the nearest cent.

In June, one of her busiest months, Dynasti sells 7 cakes, collecting a total of $795 from her customers.

 

After reading more about self-employment taxes, Dynasti realizes she can deduct the cost of the ingredients she used to bake the cakes before she determines how much tax she owes! If ingredients for those 7 cakes cost a total of $82, how much does Dynasti actually owe for SECA?  Express your answer in US dollars to the nearest cent.

In the state of MA the state sales tax is 6.25%, there are no local sales taxes in the state, and the following categories are tax-exempt (no sales tax charged).

Select ALL products that are exemptions. ^[1]

^[1] Sales Tax Institute - MA

• food for human consumption (non-restaurant)

• clothing under $175

• periodicals

• admissions/tickets

• school supplies

In the state of MA the state sales tax is 6.25%, there are no local sales taxes in the state, and the following categories are tax-exempt (no sales tax charged): Food for human consumption (non-restaurant), clothing under $175, periodicals, and admissions/tickets.^[1]

^[1] Sales Tax Institute - MA

 

How much should Glenn’s receipt list in the MA Tax line?

Express your answer in US dollars to the nearest cent.