Owed to the IRS

Owed to the IRS

Assessment

Interactive Video

Business

4th Grade - University

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial explains payroll deductions, focusing on net pay, gross earnings, and tax withholdings. It details the shared responsibilities of Social Security and Medicare taxes between employers and employees. The tutorial provides methods for calculating gross earnings and taxes, using case studies of Jasmine and Caroline to illustrate these calculations. It also covers employer responsibilities in tax remittance and the implications for self-employed individuals.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the difference between an employee's gross earnings and net pay?

Net pay includes only federal taxes.

Gross earnings include all deductions, while net pay is before deductions.

Gross earnings are the total earnings before deductions, while net pay is after deductions.

Net pay is the total earnings before any deductions.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which taxes are shared between an employer and an employee?

401K contributions

State income tax

Federal income tax

Social Security and Medicare taxes

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of Social Security tax is owed by both the employer and the employee?

10%

1.45%

6.2%

7.65%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the amount owed to the IRS by an employer calculated for an employee?

By subtracting state taxes from federal taxes

By only considering the federal income tax withheld

By doubling the sum of Social Security and Medicare taxes plus federal income tax withheld

By adding all state and federal taxes withheld

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the responsibility of a self-employed individual regarding Social Security and Medicare taxes?

They pay only half of the tax amount.

They pay only the Medicare tax.

They are exempt from these taxes.

They are responsible for the entire tax amount.