FL Final Exam: Taxes & Income

Match the following terms with their definitions:

• Salary

• Taxes on income collected by the U.S. government.

• Retirement account

• A personal investment account specifically set up to provide income during retirement.

• Federal income tax

• Payment for work expressed as a fixed annual figure.

• W-4

• An employee withholding certificate that lets your employer know how much federal income tax to withhold from your pay.

• Social Security

• Social insurance program operated by the U.S. government that provides income for individuals whose earnings are reduced or stopped because of retirement, disability, or death.

What is the federal minimum wage? What is the minimum wage in Massachusetts?

• Federal minimum wage is $7.25 per hour; Massachusetts minimum wage is $13.50 per hour.

• Federal minimum wage is $10.00 per hour; Massachusetts minimum wage is $15.00 per hour.

• Federal minimum wage is $7.25 per hour; Massachusetts minimum wage is $15.00 per hour.

• Federal minimum wage is $8.00 per hour; Massachusetts minimum wage is $14.00 per hour.

How many hours must a person work per week before he or she can earn overtime wages?

Tags

CCSS.7.EE.B.4A

Fill in the blank: The standard overtime hourly wage is _______ times the hourly rate.

• 1.5

• 2.0

• 1.25

• 1.75

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CCSS.6.RP.A.3B

Federal, state, and local income taxes are deducted from a person’s paycheck because:

• they are voluntary contributions to the government.

• they are required by law to fund government services and infrastructure.

• they are optional deductions for personal savings.

• they are used to pay off personal debts.

What percentage is deducted from a person’s paycheck for Social Security? For Medicare?

• 6.2% for Social Security and 1.45% for Medicare

• 5% for Social Security and 2% for Medicare

• 7% for Social Security and 1% for Medicare

• 6% for Social Security and 1.5% for Medicare

Tags

CCSS.6.RP.A.3C

Name a couple advantages and disadvantages to being a salaried employee.

• Salaried employees have a fixed income and job security, but may work overtime without extra pay.

• Salaried employees have flexible hours and receive overtime pay for extra hours worked.

• Salaried employees have no job security and must clock in and out daily.

• Salaried employees are paid by the hour and have no benefits.

Tags

CCSS.RL.11-12.9

CCSS.RL.6.3

CCSS.RL.7.3

CCSS.RL.8.3

CCSS.RL.9-10.3

Name 4 instances when an employee gets paid without working.

Name 4 different employee benefits.

• Health insurance, Retirement plans, Paid time off, Employee discounts

• Health insurance, Gym membership, Company car, Free meals

• Retirement plans, Paid time off, Stock options, Travel allowance

• Employee discounts, Health insurance, Paid time off, Childcare support

The two taxes known as FICA (Federal Insurance Contributions Act) taxes are:

• Social Security and Medicare taxes

• Income and Property taxes

• Sales and Excise taxes

• Corporate and Capital Gains taxes