Taxes and W4

Which of these taxes is not included as withholding tax?

• Federal and state taxes (if your state has state taxes)

• Social security taxes

• Real estate taxes

• Medicare taxes

Workers who pay FICA taxes . . .

• typically don’t have to pay any federal or state taxes.

• typically qualify to receive payments and benefits in the future.

• typically receive a larger tax refund in the spring.

• often make more money than other workers.

What does IRS stand for and what do they do?

• Internal Revenue Service – the federal government’s tax collection department

• International Revenue State – assist with student loans

• Internationally Responsible Students - promote social fairness and spirit

• Institute of Reliability Standards – monitor of meat checking and processing

When an employee starts a new job, which is legally required to be completed?

• a blood test

• a W-4 form

• prepayment of taxes for the first three months

• a complete driver’s license check

The W-4 form is used by employers to determine:

• the amount of money an employee should be earning.

• the amount of money an employee should be saving from each paycheck.

• future retirement money to be saved.

• the amount of money to be withheld from an employee to pay taxes.

Which of these is the money an employer withholds from an employee’s paycheck?

• personal allowances

• exemptions

• dependents

• withholding

Withholding tax includes which types of taxes?

• Income tax and payroll tax

• Sales tax and property tax

• Excise tax and customs duty

• Value-added tax and service tax

What is the difference between Social Security and Medicare?

• Social Security provides retirement income, while Medicare offers health insurance.

• Social Security is a health insurance program, while Medicare provides retirement income.

• Both Social Security and Medicare provide retirement income.

• Both Social Security and Medicare offer health insurance.

3. What is a basic definition of a dependent?

• A person who relies on another for financial support

• A person who is financially independent

• A person who provides financial support to others

• A person who is self-sufficient

What is the purpose of a W-4 tax form?

• To report annual income to the IRS

• To determine the amount of federal income tax to withhold from an employee's paycheck

• To apply for a tax refund

• To declare self-employment income