Unit 4 Vocabulary

The federal government levies a tax on personal income. - ________.

• Federal income tax

• State income tax

• Local income tax

• Corporate income tax

Used to provide medical benefits for certain individuals when they reach age 65. - ________.

• Medicare tax

• Social Security tax

• Property tax

• Income tax

Include Social Security and Medicare taxes. - ________.

• Payroll taxes

• Income taxes

Provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the “Federal Insurance Contributions Act” (FICA) tax. - ________.

• Social Security tax

• Medicare tax

• Unemployment tax

• Income tax

The federal government levies a tax on personal income. Revenues are used to provide services such as state police, state parks and beaches, road maintenance, and unemployment compensation, and supports P/K – Grade 12 education. - ________.

• State income tax

• Sales tax

• Property tax

• Excise tax

Employee’s Withholding Allowance Certificate—Completed by the employee and used by the employer to determine the amount of income tax to withhold. - ________.

• Form W-4

• Form I-9

• Form W-2

• Form 1099

Employment Eligibility Verification form, required to prove that you’re legally entitled to work in the United States. - ________.

• Form I-9

• Form W-2

• Form 1040

• Form SS-5

Wage and Tax Statement, States the amount of money earned and taxes paid throughout the previous year. Used to file income taxes. - ________.

• Form W-2

• Form 1099

• Form W-4

• Form 1040

This is income before all taxes. - ________.

• Gross Income

• Net Income

This is income after deductions. - ________.

• Net Income

• Gross Income

• Operating Income