12-2 Determining Payroll Tax Withholding

Taxes based on the payroll of a business are called _____ _____.

A deduction from total earnings for each person legally supported by a taxpayer, including the employee, is called a ____ ______.

Any amount withheld from an employee’s gross earnings is called a ____ ______.

Label the W-4 Form

a

b

c

d

e

Social Security Number

Signature and Date

Withholding Allowances

Marital Status

Name and Address

Reorder the steps of determining how much federal taxes are going to be withheld from an employees check.

• Intersection of earnings and withholding allowances

  
  

• Locate employee’s total earnings

  
  

• Select the appropriate table

A federal tax paid for old-age, survivors, and disability insurance is called _______.

• social security tax

• Medicare tax

• accumulated earnings

• tax base

The maximum amount of earnings on which a tax is calculated is called a _______.

• social security tax

• Medicare tax

• accumulated earnings

• tax base

The total gross earnings year to date for an employee is called _______.

• social security tax

• Medicare tax

• accumulated earnings

• tax base

A federal tax paid for hospital insurance is called _______.

• social security tax

• Medicare tax

• accumulated earnings

• tax base

A retirement savings plan approved by the Internal Revenue Service that provides individuals with a tax benefit is called a _____.