Employment and Income Tax

Hey there, future tax whiz! Can you help Anika and Ethan figure out what payroll taxes are?

• Payroll taxes are taxes on earnings that fund social insurance programs.

• Payroll taxes are voluntary contributions to retirement accounts.

• Payroll taxes are penalties for late tax filings.

• Payroll taxes are fees for hiring employees.

Hannah just received her paycheck and is excited to see how much she can spend on her weekend adventure. Can you help her figure out what her net pay is?

• Net pay is the amount an employer pays to the government.

• Net pay is the total salary before any deductions.

• Net pay is the employee's take-home pay after deductions.

• Net pay is the gross income of an employee.

Evelyn, Elijah, and Nora are discussing their paychecks over lunch. Evelyn asks, "Hey, do you know which of these deductions isn't legally required to be taken from our gross pay?"

• Federal income taxes

• State income taxes

• Healthcare Insurance

• FICA taxes

Imagine Scarlett just got her first paycheck! What does her gross pay represent?

• The amount of money remaining after taxes have been deducted.

• The amount of money a worker earns per hour worked.

• The amount of money earned before any deductions are subtracted.

• The fixed amount of money paid to an employee to do a job.

Imagine you're helping Elijah with his first paycheck! Payroll taxes include income taxes, Social Security, Medicare, and unemployment taxes. Is this true?

• True

• False

Imagine you're helping Charlotte, Rohan, and Aria with their first paycheck calculations. Which of the following is NOT a deduction required by law to be subtracted from most workers' gross pay?

• Federal income taxes

• State income taxes

• Healthcare Insurance

• FICA taxes

Imagine you're helping Abigail with her first paycheck! What are those mysterious deductions on her paycheck?

• Amounts of money added to a worker's gross pay

• Amounts of money subtracted from a worker's gross pay

• The total amount of money a worker earns

• The amount of money a worker receives after taxes only

Why do Scarlett, Zoe, and Henry need to pay taxes?

• To help build awesome parks and schools for everyone!

• To fund private businesses.

• To pay for international travel expenses.

• To increase government salaries.

Imagine you're starting a new job, and your friend James is curious about how much tax will be taken from your paycheck. What is the name of the magical form you fill out to let your employer know the amount to withhold?

• W-2 form

• 1099 form

• Tax Return form

• W-4 form

Imagine you're Mia, and you've been on a shopping spree! But uh-oh, you withheld too little in income tax. What could be the consequences of this oversight?

• You may owe taxes, incur penalties, and face interest charges.

• You will not be affected by any tax laws.

• Your tax rate will decrease automatically.

• You will receive a tax refund.