Financial Literacy I Final Exam/Study Guide - (YPSE-6908-M01 CRN: 10769) - FALL SEMESTER 2023 - MYBRCC/PSE PROGRAM

to receive a paycheck, an employee must.....

Complete a Form W-4 (Employee's Withholding Allowance Certificate) and Complete a Form I-9 (Employment Eligibility Verification)

what are some of the reasons people work?

Economic, personal, social, and community.

______ tax is a us payroll tax used to fund social security and medicare.

FICA

____ is the payment people receive for providing resources such as labor to the employer.

Income

the ____ determines the percentage of gross pay which will be withheld for taxes.

W-4

___ are money received from the employer. ___ are computed by multiplying an hourly pay rate by the number of hours worked.

Wages & Wages

The amount that is subtracted from your gross pay is called a _________________.

deduction

these documents establish identity and employment eligibility.

drivers license, passport, social security card, and birth certificate.

an _________________ tell you the amount of your gross pay, deductions, and net pay.

earning statement

The amount you earn before deductions are called your _____.

gross pay

Taxes are

immediately paid on income earned.

the amount you take home after deductions is called your ____.

net pay

the timesheet can record these additional pay adjustments :

overtime, extra time, holiday pay, shift premium, on call or emergency call back, and adverse weather.

what 3 methods employers may use to pay employees :

paychecks, direct deposit, and payroll card.

people who run their own business is _________________.

self employed

Timesheets can be _________________________________.

submitted electronically or on paper.

Bonus #1 - what is the difference between a debit card and a credit card?

the debit card is linked to your bank account and a credit card is money you borrow that must be paid back in the future.

who signs the timesheet to make it official?

the employee and the employer

Medicare is

the nation's health care program for the elderly and disabled.

who is uncle Sam?

the us government

Bonus #3 - Earned Income is

the wages or salary you receive from a job.

who is the internal revenue service (IRS) ?

they collect federal taxes, issues regulations and enforces tax laws written by the united states congress.

the timesheet enforced by

us department of labor.

the I-9 is used to

verify the eligibility of individuals to avoid hiring undocumented workers or others who are not eligible to work in the us.

the total of all the deductions or additions to an individual's paycheck from January 1st to the last day of the pay period indicated on the paycheck stub is_________.

year to date (ytd)

Bonus #2 - is it wise to budget for yourself and should you maintain a savings account?

yes

Vacation days, health insurance, and sick days are _____.

benefits

people that work at least _______ are considered __________.

1. 36-40hrs 2. full time workers

employees who work over _______ is considered to be working ___________.

1. 40 hours 2. overtime

____________ is withheld to support employees who cant work because they are ________.

1. Disability insurance 2. injured or ill

a worker's ___________ must be at least _______________________. Minimum wage in Louisiana is _______.

1. Hourly rate, 2. minimum wage, 3. $7.25

employees who work overtime are paid at _______. that rate ___ their regular rate.

1. a higher rate 2. 1 1/2 times

people who work ____________ are considered ____________ employees.

1. less than 36 hours 2. part time

your ____________ is the dates you ________________. pay periods are usually ___________, ________, or __________.

1. pay period 2. worked and are being paid 3. weekly, biweekly, or month.

_________ are the ___________________ most individuals will have.

1. taxes and largest expense

almost _____ of an individual's paycheck is deducted.

31%

a paycheck stub is

A document included with each pay period that outlines paycheck deductions and earrings.

the us government deducts payments for __________.

Medicare

State income tax is withheld by states. do all states have state income tax?

No

______ are _____________________,___________________,_________________, & ____________________ make to ______, ________, or ________________________________.

Taxes are mandatory payments individuals, households, and business make to local, state, or national governments.

a retirement plan is

a deduction an employee contributes each pay period for their retirement.

____________ is a person who relies on the taxpayer for financial support.

a dependent

the timesheet is

a legal document that employers have to keep up with employee's time worked.

---- is an annual amount paid monthly or bimonthly for a specified number of hours; usually a 40-hour work week.

a salary

you should

always make sure your personal information is correct on your check stub.