Income and Employment Study Guide

All of the following may be a part of your benefits package available from your employer, except:

FICA

Which of the following is NOT a possible tax or deduction that could come out of your paycheck?

Overtime pay

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year

W-2

What is the gig economy?

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

Which of the following statements is true about taxes?

all of the above

What do you need in order to fill out your 1040?

all of the above (W-2, routing and bank account number, record of any other supplemental income)

Which of the following is a possible tax or deduction that they may show up on your paycheck?

all of the above (federal income tax, contributions to retirement savings, FICA)

For most careers, which degree will most likely result in the highest lifetime earnings?

bachelor's degree

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

benefits

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

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

How much you're being paid is the only thing you need to consider when considering a job offer

false

There is no relationship between the level of education received and lifetime earnings

false

When considering a job offer, you should only consider how much you're being paid before you accept the offer

false

The gig economy offers ________

flexible, short-term, and independent jobs

Which of the following is NOT considered part of your benefits package available from your employer?

free technology equipment

The ___________ is a flexible market that allows you to work short-term, independent jobs

gig economy

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

What does the W-2 form tell you?

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

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called _____

net pay

Which of the following is NOT a possible tax or deduction that could show up on your paycheck?

sales tax

What do taxes pay for?

schools, government departments, roads, and emergency services

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.

What is net pay?

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

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

they are funded through taxes

What is the purpose of the W-4 form?

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

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

true

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer

true

What do you NOT need in order to fill out your 1040?

your employer benefits documentation

Net pay is NOT _______

your gross pay plus any bonuses