Everfi Employment & Taxes / Basic Banking

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package?

Free technology equipment

Which of the following statements is true about taxes?

Taxes pay for schools, first responders and roads.

Generally, the more education you receive, the ________________ will be.

higher your lifetime earnings

FICA (Federal Insurance Contributions Act)

money that goes to Social Security and Medicare programs

Tax preparation software can help prepare and file your taxes by _________.

posing questions to collect necessary information

Deductions and credits can _______ what you owe in taxes each year.

reduce

net pay

take home pay; the amount of a paycheck after all taxes and deductions have been taken out of your paycheck

withholding (tax withheld)

tax payments taken out of an employee's pay before he or she receives it

The W-4 tax form is used to ___________.

tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

Each year, you must file ____________________.

your federal taxes and state taxes if your state requires it

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

TRUE

What is net pay?

The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

Deductions

money taken out of a paycheck to pay for employee benefits like insurance or retirement plans

Associate's Degree

2 year college degree from a community college, university, college, or technical school

W-4

A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.

1040

A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year

Which of the following is NOT a common feature of a financial institution?

Access to investment advice

Which of the following is NOT a common feature of a financial institution?

Access to investment products

Bachelor's Degree

An academic degree which usually takes four years to earn and is awarded by a college or university

Which of the following financial institutions typically have the highest fees?

Check cashing and payday loan companies

Which type of bank account is best for everyday transactions?

Checking Account

Savings accounts typically offer more interest than what type of account?

Checking account

Which type of bank account typically offers the least (if any) interest?

Checking account

If you have to decide to claim a credit or deduction on your taxes which should you take?

Claim all deductions and credits that you are eligible for since they both can reduce your taxes.

benefits

Compensation in forms other than direct payment (health insurance, paid time off, disability insurance, retirement plan)

When preparing your taxes, what can possibly help reduce the amount of taxes that you owe?

Credits and deductions

Which of the following statements is true about education and lifetime earnings?

Generally, the more education you receive, the higher your lifetime earnings will be.

What is the difference between gross and net pay?

Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

What does the W-2 form tell you?

How much you've earned and how much taxes you've paid in the last year.

Which of the following statements is TRUE?

If there is a mistake on your bank account, you should contact your financial institution immediately.

Which of the following is NOT a common feature of a financial institution?

Investment trading

personal allowances

Items or exemptions you can claim on your W-4 form that reduce the amount of tax taken out of your paycheck

Which savings account will earn you the most money?

One that compounds interest daily.

from your paycheck?

Overtime pay

health insurance

Provides money to pay for health care for illness or injury

from your paycheck?

Restaurant tax

from your paycheck?

Sales tax

Which of the following statements about savings accounts is FALSE?

Savings accounts allow an unlimited amount of withdrawals each month.

Which of the following statements about savings accounts is FALSE?

Savings accounts don't usually pay interest on the money you deposit.

Which of the following statements about savings accounts is FALSE?

Savings accounts don't usually require a minimum balance.

What do taxes pay for?

Schools, government departments, roads, and emergency services

Paid Time Off

a benefit that provides employees with pay for time when they are not working

gig economy

a flexible market that allows you to work short-term independent jobs

Sales Tax

a tax on purchases or services (not based on income)

retirement savings plan

an account into which employees contribute a portion of their earnings to save for their retirement; employers may match these contributions

standard deduction

an amount of money set by the IRS that is not taxed

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.

benefits

filing status

describes your tax-filing group which is based on your marital status (single, married filing separately, married filing jointly)

The W-2 form is a form that tells you _______.

how much taxes you've paid in the last year based on how much you've earned.

taxable income

income on which tax must be paid; total income minus exemptions and deductions

taxes

money paid to the Federal, State, and Local governments for schools, parks, roads, emergency services, etc.

account number

the number that identifies a particular bank account

gross pay

the total amount of an employee's earnings before deductions are taken out

When you start a new job, you fill out a W-4 form to _________.

to determine how much federal income tax your employer should withhold from your paychecks.

Why is it necessary to have a W-2 or 1099 form when using tax preparation software?

These forms report income which needs to be used to file taxes.

How does the government pay for roads, schools, and emergency services?

They are funded through taxes.

Which of the following statements about check cashing companies is TRUE?

They charge high fees.

Which of the following statements about check cashing companies is FALSE?

They charge low fees.

Why is it useful to have your bank account and routing numbers when using tax preparation software?

To indicate where tax refunds should be sent.

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paychecks.

W-2

a form that tells you how much you've made and how much you've paid in taxes in the last year; you will use this to fill out your tax return

disability insurance

money that replaces some of your lost income if you are injured or sick and can't work

To file your federal and state taxes you ____________

must prepare different forms for each type of government (if your state requires it)

your paycheck is called ________.

net pay

routing number

nine digit bank code used in US on bottom left of checks used to identify the financial institution (bank)

Generally, _____________ you receive, the higher your lifetime earnings will be.

the more education

Why might preparing taxes be different for people living in different states?

Everyone must file federal taxes, but each state has different tax laws.

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package?

FICA

Which savings account will earn you the least money?

One that earns simple interest monthly.

how much you've paid in taxes in the last year.

W-2