Paycheck and Income Tax

The actual amount of money you "take home" is

• Gross Pay

• Never Enough

• Net Pay

• Payroll Income

Why do you need to fill out a W-4?

• It lets your employer determine what kind of health insurance you need.
• It helps your employer determine what percentage of your income should be deducted for taxes.

Which is bigger, gross pay or net pay?

• gross pay
• net pay

Employees have deductions taken out of their paychecks. Identify which is NOT considered required by the government.

• State Income Tax

• Federal Income Tax

• Dental Insurance

• Social Security

Employees have deductions taken out of their paychecks. Identify which is NOT considered "elective" - it is required by the government.

• Life Insurance

• Social Security

• Dental Insurance

• 401 (K) or 403 (B)

What is a 401K?

• Health Insurance

• Overtime Pay

• Employer Sponsored Retirement Plan

• Profit Sharing Benefit

Mr. Johnson received $1,750 on his paycheck for two weeks. He got $275 taken out of his check for taxes and $125 for his health insurance. The amount he had left is defined as his –

• Gross income

• Net income

• Income tax

• Property tax

Joanne’s dad makes $54,000 every year. This is the amount of money he makes before taxes, insurance and other deductions are taken out of his paychecks. The amount of money he makes before these items are taken out is called his –

• Gross income

• Net income

• Income tax

• Property tax

Identifies taxes to be withheld from pay

• W-15

• W-4

• Tax Form

• Liability Tax Form

FICA is comprised of two different parts… what are they?

• Social security and federal tax
• Social security and state tax
• Medicare and social security
• Medicare and federal tax