CM Chapter 2 Review

Federal income tax is handled by the Federal Bureau of Investigation

• True

• False

Employers are not required by law to withhold a certain amount of pay for federal income tax

• True

• False

It is not possible to have zero withholding allowances when calculating income tax

• True

• False

Withholding allowances are also known as personal exemptions

• True

• False

The graduate income tax for high incomes may be as much as 20%

• True

• False

Personal exemptions are deducted on the first $90,000 of income annually

• True

• False

Social Security tax is 0.062%

• True

• False

Medicare taxes are paid on all earning

• True

• False

Group Insurance allows employees to gain medical coverage for less than the individual rate

• True

• False

Net pay plus total deductions equals gross pay

• True

• False