FA Unit 1 Test

1099s are used…

• To report income like contract work, interest, dividends, and unemployment benefits

  
  

• To figure out how much an employer should deduct in taxes from your paycheck

A W-2 is…

• Issued by an employer at the end of the year to detail how much the employee paid and how much taxes were withheld

• Issued by a business to an independent contractor to detail how much money was paid for contracted work

  
  

Which statement best describes the difference between being paid a wage versus being paid a salary?

• A wage is paid based on how many hours you work, while a salary is a fixed amount paid regardless of the number of hours

  
  

• A wage is paid to part-time employees, while a salary is paid to full-time employees

Who should consider completing a W-4 form?

• Bruno, who just adopted a baby and wants to adjust his tax withholdings

• Carter, who is considering a career change and wants to update his resume

Why does the government collect taxes?

• To pay for services such as teachers, policemen, firefighters, roads, and more.

• To pay for services such as banks, restaurants, departments stores, gas stations, and more.

How do you change 15/100 to a decimal?

• Divide the numerator (15) by the denominator (100)

• Multiply the numerator (15) by the denominator (100)

How do you change .10 to a percent?

• Move the decimal two places to the right or multiply by 100.

• Move the decimal one place to the right or multiply by 10.

  
  

Which of these is a rational number?

• 20/100

• 10/0

Which form will you fill out when you start a job?

• W-4

  
  

• W-2

Which is tax is the largest source of money for the U.S. government?

• income tax

• sales tax