Unit Review (Taxes)

Which person should expect to receive a W-2 form from their employer by January 31st, 2024?

• Marcy, who has sold handcrafted vases online for the past 5 years
• Jose, whose first job started on January 10, 2024
• Arnie, who did an unpaid internship in summer 2022 for ESPN
• Kelly, who has worked for the same department store for the last 15 years

What does the term "withholding" mean in reference to your paycheck?

• It is the amount of your paycheck that you are NOT being taxed on.
• It is how much is being taken out of your paycheck in taxes.
• It is how much you are going to owe the government when you file your annual tax return.
• It is how much you earn and includes salary, bonus and commissions.

When do you start paying income tax?

• When you turn 18
• When you make more than the minimum income requirement
• When you get a full-time job (part-time does not count)
• When you are notified by the IRS that you are required to pay federal income taxes

What is the difference between gross pay and net pay?

• Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay.
• Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay.
• There is no difference between gross and net pay.

What does FICA consist of?

• Health Insurance
• Social Security & Medicare
• Federal & State Taxes
• Employer Sponsored Retirement

How do employers figure out how much federal income tax to withhold from your paycheck?

• It is set by a federal regulation at 7.65%
• It is based on your previous year's tax return
• It is based on the information you have provided on your I-9 form
• It is based on the information you have provided on your W-4 form

Sarah and her brother Steve both make the exact same amount of money, but they are paying a different amount in taxes. What is one reason why Sarah and Steve might pay different amounts?

• They use different online tax filing systems.
• Steve is older than Sarah.
• They live in different states.
• Sarah filed her tax return earlier than Steve.

What is the first day of the calendar year? Your earnings for the year begin on this date.

• Jan. 1
• Dec. 32
• Jan. 23
• Apr. 18
• Oct. 15

What is the deadline for you to receive your W-2 from your employer?

• Within 30 days of hire
• Any time you request it in writing
• January 31st
• April 15th

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?

• You need to file your tax return by the end of the calendar year (typically December 31st)
• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return
• You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
• You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money