Unit 1 Income and Taxes

Who fills out the W-4 form?

• Employees fill it out

• Employers fill it out

• The director fills it out

• The employees mom fills it out

Define FICA

• Federal Health Insurance for people 65 years and older

• Helps fund Social Security and Medicare taxes

• Takes a percentage out of gross wages that most people have to pay the Federal government

• The amount of income subject to tax after deductions

What is an I9 form?

• Records all types of income and expenses

• Makes it so the employer witholds the correct amount of federal income tax from your pay

• Verifies the employees identification

• Provides tax information to your employer

A 1040 form reports all types of income and expenses and claim tax deductions and credits

• True
• False

An I-9 form makes it so the employer witholds the correct amount of federal income tax from your pay

• True
• False

When is the W-2 form typically issued by employers?

• By January 31st of the following year.

• At the end of each quarter.

• By April 15th of the following year.

• Upon the employee's request at any time.

Who is required to file a 1040 form?

• Only individuals who are self-employed.

• Anyone who has earned income in the U.S.

• Only individuals who earn more than $100,000.

• Non-resident aliens only.

What is the deadline for filing your tax return (Form 1040)?

• March 15

• April 15

• May 1

• July 15

What time is the social security tax rate

• 0.9%

• 6.2%

• 1.5%

• 7.2%

The medicare tax is 1.45%

• True
• False