Employment and Taxes

What do taxes pay for?

• Schools, government departments, roads, and emergency services

• Privately-owned businesses

• Operation of financial institutions

• None of the above

What is the purpose of the W-4 form?

• To file your tax return.

• To determine how much your gross pay should be.

• To inform your employer of how much federal income tax to withhold from your paychecks.

• To avoid paying income taxes on your paychecks.

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year.

• When to file your tax return.

• How much federal income tax your employer will withhold from your paycheck.

• How often your employer will be paying you.

Why might preparing taxes be different for people living in different states?

• Everyone must file state taxes but depending on where you live, you may not need to file federal taxes.

• Everyone must file federal taxes, but each state has different tax laws.

• It's not different. All states have the same tax laws.

• State taxes are due January 1st but federal taxes are due April 15th.

Which of the following statements is true about taxes?

• Taxes pay for schools first responders and roads.

• Taxes pay toll road fees and office buildings.

• Taxes are only collected by the federal government.

• Taxes are only collected by state governments.

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• Restaurant tax

• Federal income tax

• FICA

• Contributions to retirement savings

When you start a new job, you fill out a W-4 form to ________.

• determine how much your gross pay should be.

• file your tax return.

• avoid paying income taxes on your paychecks.

• to determine how much federal income tax your employer should withhold from your paychecks.

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• State income tax

• Contributions to retirement savings

• FICA

• Sales tax

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package?

• Free technology equipment

• Disability Insurance

• Paid time off

• Healthcare insurance

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.

• gross pay

• net pay

• total pay

• year-to-date pay