Taxes and Your Paystub

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?

• Social Security

• Security and Defense

• Education

• Medicare

• Transportation

3. Which statement best describes discretionary government spending?

• 1. A fixed amount of money spent on the same categories every year

• 1. The money used to pay for Social Security and Medicare

• 1. A changing amount of money spent on different categories each year

• 1. Money that you determine how it is spent by the government when you submit your taxes

All of the following are discretionary expenses except...

• Education

• National Parks and Monuments

• Foreign Aid

• Medicare/Medicaid

What are the top three categories the government spends our tax dollars on?

• Welfare

• Social Security

• Medicare/Medicaid

• Security and Defense

• Agriculture and farming

2. On a pay stub, the amount of money that is left after withholdings is known as…

• Net pay

• Gross pay

• Annual Earnings

• Wages/Tips

Pay before deductions and taxes are taken out is GROSS PAY

• True
• False

2. What are Pre-Tax Deductions and Contributions?

• 1. Contributions taken out of your paycheck AFTER taxes are calculated on your income

• 1. Contributions taken out of your paycheck BEFORE taxes are calculated on your income

3. What are two examples of Employer Contributions?

• IRA

• Health Insurance

• Federal Taxes and State Taxes

• Roth IRA

• 401k