Taxation Questions

What are payroll taxes?

• Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.

• Taxes imposed on goods and services at each stage of production or distribution.

• Taxes levied on the profits of a corporation.

• Taxes imposed on the value of property owned.

What are income taxes?

• A type of sales tax

• A tax on a person's earnings

• A tax on property ownership

• A tax on imported goods

What is the Federal Insurance Contributions Act (FICA), why/when was it created?

• A tax law enacted in 1935 to fund Social Security and Medicare programs

• A federal insurance policy for government employees

• A state-level tax for unemployment benefits

• A healthcare act passed in 1965

What other payroll taxes do workers of PA have to pay & what are the percentages for each tax?

• Social Security tax at 6.2% and Medicare tax at 1.45%

• State income tax at 3.07% and local services tax at $52 per year

• Unemployment tax at 0.06% and workers' compensation at 2%

• Federal income tax at 10% and state sales tax at 6%

What is the difference between a table tax and a percentage tax?

• A table tax is a fixed amount, while a percentage tax is based on a percentage of the value.

• A table tax is based on a percentage of the value, while a percentage tax is a fixed amount.

• Both table tax and percentage tax are fixed amounts.

• Both table tax and percentage tax are based on a percentage of the value.

What taxes other than payroll taxes might residents of PA have to pay?

• Sales tax

• Property tax

• Income tax

• All of the above

What is it called when your employer deducts or withholds money to pay your tax responsibility?

• Tax evasion

• Tax withholding

• Tax exemption

• Tax refund

Which of the taxes mentioned earlier does your employer have to match by law?

• Social Security tax

• Medicare tax

• Federal income tax

• State income tax

What is the difference between gross and net income?

• Gross income is the total earnings before deductions, while net income is the earnings after all deductions.

• Gross income is the earnings after deductions, while net income is the total earnings before deductions.

• Gross income and net income are the same.

• Gross income is the earnings after taxes, while net income is the earnings before taxes.

Why must all employees fill out the W-4 form?

• To determine the correct amount of tax to withhold from their paycheck

• To apply for health insurance benefits

• To enroll in the company's retirement plan

• To register for employee training programs