9.1-9.4 Quiz Review

1. Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

• 1. FICA

• 1. Federal

• 1. State

• 1. Local

3. The federal income taxes that are withheld from your paycheck are used to pay for what?

• 1. Medicare and Social Security

• 1. Unemployment insurance

• 1. Discretionary spending

• 1. Mandatory spending

1. What is the difference between gross pay and net pay?

• 1. Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay

• 1. There is no difference between gross pay and net pay

• 2. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

2. What are Pre-Tax Deductions and Contributions?

• 1. Contributions taken out of your paycheck AFTER taxes are calculated on your income

• 1. Contributions taken out of your paycheck BEFORE taxes are calculated on your income

3. What are two examples of Employer Contributions?

• 1. Health insurance and 401(k)

• 1. 401(k) and Roth IRA

• 1. Federal and state taxes

• 1. Traditional and Roth IRA

Match the following

• W-4

• • I am received in January

  • You get me if you are not an employee but were paid by a company

  • You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more

  • You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up

• 1099

• • I am completed every April

  • Anyone can use me

  • Beware, there is a LOT to fill out

• 1040

• • I am received whenever you start a job

  • You use me to prove that you are eligible to work in the U.S.

  • You must provide forms of identification when submitting me

• W-2

• • I am received whenever you start a job

  • You list information about yourself and your family on me

  • I determine how much money gets taken out of each paycheck

• I-9

• • I am received in January

  • There is one of me for every job you work

  • You can tell how much you earned and how much you paid in taxes by reading me

What is the threshold for income earnings to file taxes? (include only numbers, no commas or dollar signs)

Organize these options into the right categories

Groups:

(a) Required to File Taxes

,

(b) Do Not Need to File Taxes

• 23 year old who lives at home and has a side gig where they make $500 a year

• 19 year old who lives at home but pays their own bills and makes $13,000 a year

• 16 year old who lives at home and makes $5,400 at a part time job

• 22 year old college student who makes $11,500 per year

• 21 year old who share and apartment and makes $24,000

1. All of the following people should receive W-2 forms EXCEPT…

• 1. Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools

• 1. Melinda, who works 40 hours/week at a local ice cream shop during the summer

• 1. Marcus, who is on salary as a sales representative at a shoe store, working full-time

• 1. Serena, who is a freelance wedding photographer

2. What are two important items detailed in your W-2 form? (select two correct answers)

• 1. Wages, tips, and other compensation

• 1. Number of dependents you will claim

• 1. Federal and state taxes withheld from your earnings

• 1. Additional money you want withheld from your paycheck