Everfi Employment and Taxes

Generally, the more education you receive, the ________________ will be.

• lower your lifetime earnings

• lower your electricity bills

• higher your food bills

• higher your lifetime earnings

What is the difference between gross and net pay?

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

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

• Gross and net pay are basically the same things.

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

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• FICA

• Overtime pay

• Federal income tax

• Contributions to retirement savings

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

The W-2 form is a form that tells you _______.

• how often you will be paid

• how much taxes you owe to the federal government

• how much taxes to withhold from our your paycheck

• how much taxes you've paid in the last year based on how much you've earned

Why might preparing taxes be different for people living in different states?

• Everyone must file state taxes but depending on where you live, you may not need to file federal taxes.

• Everyone must file federal taxes, but each state has different tax laws.

• It's not different. All states have the same tax laws.

• State taxes are due January 1st but federal taxes are due April 15th.

When preparing your taxes, what can possibly help reduce the amount of taxes that you owe?

• Stock and savings interest

• Sharing what you earned on a W-2 or 1099 form

• Having stock dividends

• Credits and deductions

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?

• disability insurance

• matching contributions to a retirement account

• FICA

• healthcare insurance

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.

• benefits

• pensions

• deductions

• allowances

Why is it useful to have your bank account and routing numbers when using tax preparation software?

• To indicate where tax refunds should be sent.

• To show how much interest you have earned over the year.

• To use as additional forms of identification.

• To show much money you have paid in taxes.