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WorksheetsPayroll & Federal Income Taxes Withholding
Total questions: 21
Worksheet time: 59mins
Name
Class
Date
1.
The federal government levies a tax on personal income to provide for
a)
national defense and law enforcement
b)
veterans and foreign affairs
c)
social programs like food and housing assistance and college grants
d)
All answers shown
2.
FICA (Federal Insurance Contributions Act) taxes provide benefits for retirees. Another name for FICA is Social Security.
a)
true
b)
false
3.
Which form tells an employer how much to deduct for taxes?
a)
W2
b)
W4
c)
1099
d)
1040
4.
What is the purpose of the form W4?
a)
It is used to show interest income.
b)
It is used to complete your yearly tax return.
c)
To help employers compute the amount of income tax to withhold
d)
It shows the date you were hired.
5.
As an employee, you can decide when to pay your payroll taxes.
a)
true
b)
false
6.
What percent of gross pay is Medicare tax?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
7.
What percent of gross are payroll taxes (social security + medicare)?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
8.
What percent of gross pay is federal income tax?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
9.
Determines the amount of federal withholding tax from an employee's paycheck
a)
Taxation Form
b)
I9 Form
c)
W4 Form
d)
Deduction Form
10.
The total amount of earnings before any deductions are taken out
a)
Gross Pay
b)
Net Pay
c)
After-tax Income
d)
Yucky Pay
11.
Payroll taxes are comprised of two different parts… what are they?
a)
Social security and federal tax
b)
Social security and state tax
c)
Social security and medicare
d)
Medicare and federal tax
12.
Which tax form is used to tell your employer the amount of allowances you will be claiming?
a)
W2
b)
W4
c)
1040EZ
d)
1099-INT
13.
When is a W4 form filled out?
a)
When you file your taxes
b)
When you quit a job
c)
Right before you start a job
14.
Who is responsible for filling out a W4 form?
a)
You
b)
Your employer
c)
Your Bank
d)
The IRS
15.
Why did we initially have to pay taxes?
a)
The American Revolution
b)
To pay off war debt
c)
All answers shown
16.
Who is responsible for filling out a W4?
a)
Your employer
b)
You
c)
Your teacher
d)
The IRS
17.
Is tax avoidance acceptable?
a)
yes
b)
no
18.
Is tax evasion acceptable?
a)
yes
b)
no
19.
The IRS expects voluntary compliance of citizens to pay their share of taxes.
a)
true
b)
false
20.
Citizens have the right to appeal IRS decisions.
a)
true
b)
false
21.
By what deadline should you file your annual income tax return?
a)
January 14
b)
December 14
c)
April 14
d)
January 31
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