QUIZ: Ch. 6.3 - 6.4 (Math for Finance)

Match the following

• Flexible Spending Account (FSA)

• The amount of money a worker takes home after taxes

• Cafeteria Plan

• A portion of pretax wages set aside for the payment of certain medical, childcare, parental care, and unreimbursed medical insurance expenses

• Gross Pay

• The total pay (hourly rate and any overtime) an employee receives before taxes are taken into consideration

• Net Pay

• A form of payment to employees for their work, usually handled by someone who works in payroll

• Paycheck

• An employee-sponsored cafeteria plan in which employees choose to deposit funds that will be used in a specified 12-month period of time; this is a "use it or lose it" plan

Match the following

• Form W-4

• A form that is filled out by a new employee that gives directions to the government on how much money in taxes to deduct from an employee's paycheck

• Tax-Deferred Contribution

• A form sent to taxpayers that is used to report other income made from interest on bank accounts, interest from stocks, etc.

• Form W-2

• Federal, state, and local income taxes that are withheld by employers, who then send the money to the government

• Form 1099

• A form used to report income and tax data; this is used to compute federal, state, and local income taxes

• Withholding Tax

• When money is placed in a qualified retirement account, the taxes are delayed until the taxpayer makes a withdrawal from the account after retirement

[Ch. 6.3 Notes, Question #1] What form do you fill out so your job knows how much money to take out of your paycheck to help pay for taxes?

• Form W-2

• Form W-4

• Form 1099

• Form W-420

[Ch. 6.3 Notes, Question #3] Aside from local, state, and federal taxes, list the two items outlined in your textbook that your withholding taxes help pay for when taking money out of your paycheck:

• Military

• Social Security

• Education

• Medicare

[Ch. 6.3 Notes, Question #4] When working at a job, who fills out Form W-2?

• You

• Your employer (aka, your job)

• Your Mom

• Your boyfriend / girlfriend. But if you don't have one, then you borrow your best friend's boyfriend / girlfriend. And if they don't have one, then Mr. Yancey.

[Ch. 6.3 Notes, Question #7] What is the maximum amount of money you could be penalized for committing tax evasion as an individual?

• $50,000

• $120,000

• $250,000

• $1,500,000

[Ch. 6.3 Notes, Question #8] Approximately what (%) of your paycheck is taken out to help pay for Social Security?

• Approx. 1%

• Approx. 3%

• Approx. 6%

• Approx. 15%

You work at Culver's and earn $13.50 per hour. For any amount of time you work over 40 hours, you earn 1.5x per hour.

Your manager says they need you to work 50 hours this week and post a picture of a satisfied customer at Culver's on your social media account, to which they'll give you a one-time $25 bonus. You snap this gem of a picture and your boss loves it!! What will your total gross pay be for the week, including the $25 bonus?

You work at Firehouse and earn $14.00 per hour. Your manager says they need you to work 40 hours this week, to which you say, "My Pleasure." And then your manager says, "What is this, Chick-Fil-A!? You say WITH Pleasure!"

You receive your paycheck at the end of the week and notice some money has been withheld to help pay for Medicare. What is the total amount deducted off your 1-week paycheck for Medicare? (Assume 1.45% is taken out for Medicare)

Your dad works as a Police Officer and earns $49,000 per year. Your dad gets paid every two weeks and works a total of 80 hours in a two-week pay period. Assuming your dad puts in a total of 2,000 hours for the year, what amount will be deducted off his two-week paycheck for Social Security? Assume 6.20% is taken out for Social Security. (*Hint: What does he make per hour?)