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WorksheetsUnit 2 Earning Income
Total questions: 25
Worksheet time: 13mins
A labor market based on flexible, temporary, independent contractors and freelancers most often connected to customers through an online platform
(Unit 2 Vocab)
Gig Economy
Entreprenuer
Soft Skills
Human Capital
The required financial contribution levied by the government on an individual's earnings, investments, and certain sources of income, serving as a significant source of government revenue to fund public services, infrastructure, and societal needs
(Unit 2 Vocab)
Non-Income Factors
Income Tax
Social Security
Capital Gain
The fixed and regular monetary compensation an individual receives for their work based within a specified time frame, often on a monthly or yearly basis
(Unit 2 Vocab)
Net Pay
Dividend
Salary
Wage
A formal arrangement in which an individual performs specific tasks, responsibilities, or roles within an organization or profession in exchange for compensation
(Unit 2 Vocab)
Salary
Income
Capital Gain
Job
Personality traits and interpersonal skills that are needed to communicate and work with others
(Unit 2 Vocab)
Soft Skills
Opportunity Cost
Interest
Career
What percentage of all open (job) positions are filled through networking contacts?
(2.1 Article - How to Find a Job Using Job Boards and Websites)
55%
85%
70%
60%
Job postings that are on job boards, but the company isn't actively hiring for the role are known as
(2.1 Article - How to Find a Job Using Boards and Websites)
Big Boards
Niche Jobs
Ghost Jobs
Job Alerts
Which document is shown in the picture?
W-2
W-4
1040
Pay Stub
What information below is not found on a W-4?
How much money the employee made that year
Employee Address
Number of Children or other Dependents
Extra Withholding
How much money was withheld from Lily's paycheck for Social Security taxes throughout the year?
14,450
895.90
1080.50
209.52
The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
(Tax Vocab)
1099
I-9
1040
W2
Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States
(Tax Vocab)
1099
1040
W-4
I-9
Someone who you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes
(Tax Vocab)
Exemption
Dependent
Unearned Income
Withholding
A form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors
(Tax Vocab)
I-9
W-2
1099
W-4
A Federal Law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare
(Tax Vocab)
Excise Tax
Payroll Tax
Federal Insurance Contributions Act (FICA)
Marginal Tax Rate
Individuals who are self-employed, pay their own taxes (not their client), and usually have more than one employer for whom they work are called...
(2.6 Article -Difference Between a Freelancer, a Contractor, and an Employee)
Contractor
Employee
Employer
Freelancer
Which option below is a difference between Contractors and Freelancers?
(2.6 Article -Difference Between a Freelancer, a Contractor, and an Employee)
They can be hired as a temporary replacement to a full-time worker
They are self-employed
They pay their own taxes
Can be involved with several clients at a time
Which option below is not one of the 7 tips for budgeting when you're a gig worker?
(2.6 Article -How to Budget as a Gig Worker)
Pay yourself a monthly salary
Use debt to build-up your credit score
Don't splurge on the good months
Plan for hidden costs
Which option below is NOT a penalty that employers must face for misclassifying their own employees?
(2.6 Article -Difference Between a Freelancer, a Contractor, and an Employee)
Class-action lawsuits
Wage and tax audits
A fine for each wrongly filed employee form
Possible jail time
What is a possible negative consequence if an employer misclassifies you as an employee and not an independent worker?
(2.6 Article -Difference Between a Freelancer, a Contractor, and an Employee)
It can cost you and your client a potential fine or additional taxes
It can lead to a warrant for your arrest
The IRS will audit the last 8 years of your business
You may be held liable under U.S. tax evasion laws.
Which option below would NOT be considered a "Non-Income Factor"
How much money you make compared to your last job
Living close to a new job
Your new job is more satisfying and makes you happier
Your new job offers a better work-life balance
Which is NOT true about claiming a dependent?
(2.7 Reference - Can I claim them as a Dependent?)
Dependents can reside in Canada or Mexico and still be claimed
Only non-citizens can be claimed as dependents
Dependents can use their Individual Taxpayer Identification Number
Not file 'Married Filing Jointly' unless its only to claim a refund of taxes paid
You can claim a dependent child if...
(2.7 Reference - Can I claim them as a Dependent?)
The child must be older than you
If they attended school full-time for a minimum of five months during the year, you can claim them up to age 32.
You provide at least 50% of the child's support (food, shelter, clothing)
They must be over the age of three on Dec. 31 of the tax year
You can claim a dependent parent or adult relative if...
(2.7 Reference - Can I claim them as a Dependent?)
They are already claimed as a dependent by another taxpayer
You must pay for 25% of the parent's household expenses
Their gross income is less than $4,300
Your gross income is at least $45,000 annually
Which option below is NOT a requirement for filing taxes as a Dependent?
(2.7 Reference - Do I Need to File a Tax Return?)
You must be older than 65 years old
Your earned income was more than $13,850
Your unearned income was more than $1,250
Your gross income was more than the larger of $1250 or your earned income plus $400
