Employment and Taxes Review

Which of the following statements is true about education and lifetime earnings?

• Generally, the less education you receive, the higher your lifetime earnings will be

• Generally, the more education you receive, the lower your lifetime earnings will be

• There is no relationship between the level of education received and lifetime earnings

• Generally, the more education you receive, the higher your lifetime earnings will be

What is Net Pay?

• The amount of pay earned for the total number of hours worked

• The amount of money you're paid after all taxes and deductions are taken out of your paycheck

• The amount of money you're paid before all taxes and deductions are taken out of your paycheck

• Your gross pay plus any bonuses

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• Restaurant tax

• Federal income tax

• FICA

• 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

What does the W-2 form tell you?

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

• When to file your tax return

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

• How often your employer will be paying you

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

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

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

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

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

Which of the following statements is true about taxes?

• Taxes pay toll road fees and office buildings

• Taxes are only collected by the federal government

• You must opt-in to pay taxes

• Taxes pay for schools, first responders, and roads

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