Understanding Wage and Tax Forms

What is a paycheck?

• Money in coins or paper notes

• A written order signed by the employer for salary or wages

• An electronic deposit of money into a bank account

• A debit card automatically loaded with wages

Which payment method involves an electronic deposit into a bank account?

• Cash

• Paycheck

• Direct Deposit

• Payroll Debit Cards

What is a pay stub?

• A document showing the amount of money earned and deducted from a paycheck

• A receipt for a purchase

• A tax return form

• A bank statement

What does the wage rate on a pay stub indicate?

• The amount you earn per hour

• The total amount earned before taxes

• The amount after deductions

• The amount withheld for taxes

What are federal, state, and local tax rates based on?

• Age

• Income

• Education

• Employment type

How do state and local taxes vary?

• By age group

• By income level

• From state to state and city to city

• By occupation

What happens to your taxes if you earn less?

• They increase

• They stay the same

• They decrease

• They double

What is the purpose of a Social Security Number?

• To track payment information

• To identify the check number

• To assign a numerical identifier for benefits

• To determine the pay date

How much is deducted for FICA SS Tax in the current pay period according to Dani's pay stub?

• $55.80

• $13.05

• $58.47

• $40.36

What does "Year to Date (YTD)" refer to on a pay stub?

• Total amount of deductions or income paid so far in the current year

• Total amount of deductions for the entire year

• Total income expected for the next year

• Total deductions expected for the next year