Money Mgt: Case Study Part I

When filing your taxes, what does CPA stand for?

• Certified Public Accountant

• Certified Payroll Authority

• Cost Performance Administrator

• Certified Program Analyst

Most students (like Susan) work a full-time job while attending high school.

• True

• False

If we keep working the same job each year, we should expect to receive a W-4 every january for each tax season.

• True

• False

What is the purpose of completing a W4?

• This form is used to document different types of payments other than your employer.

• This form is used file your state and federal taxes

• This form is used to help employers know the correct amount of tax to withhold from your pay.

• This state form is used to determine your taxable income and the amount of tax on that income.

What are the advantages (benefits) of writing EXEMPT?

• If you make less than a standard deduction, you will have to file a tax return.

• If you make more than the standard deduction, you will not have file a tax return.

• By writing exempt on the form your employer pays less in federal tax.

• By writing exempt on the form your employer pays more in state tax.

What are the disadvantages (pitfalls) of writing EXEMPT?

• You will be able to receive overtime pay

• Not enough money may be taken out of your paycheck and you may still owe taxes.

• Exemptions are designed to hold certain groups of people accountable for paying their taxes.

• You may run into minimum wage issues if you are paid in tips at the job .

Which is larger, gross pay or net pay?

• Gross pay

• Net Pay

Do you still have to pay Social Security and Medicare taxes if you write EXEMPT on a W4?

• No, because everything is exempt.

• Yes

• No

• It depends on who receives the W4 form submitted