9.1-9.4 Quiz Review

1. Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

• 1. FICA

• 1. Federal

• 1. State

• 1. Local

3. The federal income taxes that are withheld from your paycheck are used to pay for what?

• 1. Medicare and Social Security

• 1. Unemployment insurance

• 1. Discretionary spending

• 1. Mandatory spending

1. What is the difference between gross pay and net pay?

• 1. Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay

• 1. There is no difference between gross pay and net pay

• 2. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

2. What are Pre-Tax Deductions and Contributions?

• 1. Contributions taken out of your paycheck AFTER taxes are calculated on your income

• 1. Contributions taken out of your paycheck BEFORE taxes are calculated on your income

3. What are two examples of Employer Contributions?

• 1. Health insurance and 401(k)

• 1. 401(k) and Roth IRA

• 1. Federal and state taxes

• 1. Traditional and Roth IRA

Match the following

• W-2

• • I am received in January

  • There is one of me for every job you work

  • You can tell how much you earned and how much you paid in taxes by reading me

• 1040

• • I am received in January

  • You get me if you are not an employee but were paid by a company

  • You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more

  • You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up

• I-9

• • I am received whenever you start a job

  • You list information about yourself and your family on me

  • I determine how much money gets taken out of each paycheck

• W-4

• • I am received whenever you start a job

  • You use me to prove that you are eligible to work in the U.S.

  • You must provide forms of identification when submitting me

• 1099

• • I am completed every April

  • Anyone can use me

  • Beware, there is a LOT to fill out

What is the threshold for income earnings to file taxes? (include only numbers, no commas or dollar signs)

Organize these options into the right categories

Groups:

(a) Required to File Taxes

,

(b) Do Not Need to File Taxes

• 23 year old who lives at home and has a side gig where they make $500 a year

• 19 year old who lives at home but pays their own bills and makes $13,000 a year

• 16 year old who lives at home and makes $5,400 at a part time job

• 22 year old college student who makes $11,500 per year

• 21 year old who share and apartment and makes $24,000

1. All of the following people should receive W-2 forms EXCEPT…

• 1. Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools

• 1. Melinda, who works 40 hours/week at a local ice cream shop during the summer

• 1. Marcus, who is on salary as a sales representative at a shoe store, working full-time

• 1. Serena, who is a freelance wedding photographer

2. What are two important items detailed in your W-2 form? (select two correct answers)

• 1. Wages, tips, and other compensation

• 1. Number of dependents you will claim

• 1. Federal and state taxes withheld from your earnings

• 1. Additional money you want withheld from your paycheck