PF - 2 Sources of Income, My Paycheck, & Taxes- (Sec. 1,2,3 of 3)- 9/29/17(Fri.)- Quiz 2, & PF - 2 Review- (Sec. 1 of 1)-10/6/17(Fri.)
2 PF- Sec. 3: The government uses the revenue from taxes to pay for goods and services for the community.
- True - False answer: - True
2 PF- Sec. 1: Tips, bonuses, and capital gains are all _____.
- deductions on your paycheck stub - fields on the W-2 form that need to be completed - employee benefits - sources of income answer: - sources of income
2 PF- Sec. 1: Rachel's paycheck stub shows an amount that was subtracted from her pay for health insurance. This is a _____.
- dividend - tax return - commission - deduction answer: - deduction Deductions are the amounts that are subtracted from your pay and include federal and state taxes, Social Security, Medicare, and costs for health insurance.
2 PF- Sec. 2: When weighing your employment options, consider _____.
- employee benefits - pay period - taxes - taxable income answer: - employee benefits
2 PF- Sec. 1: When a company makes earnings or a profit, and they share this profit with the stockholders, it's called _____.
- interest - gains - dividends - tips answer: - dividends
2 PF- Sec. 3: Select the different types of taxes.
- sales - property - elective - income - voluntary answer: - income - sales - property
2 PF- Sec. 3: Ann is in the middle of completing her first 1040EZ tax form. She has some questions about an instruction on the form. What should she do?
Writer: To file a tax return form, you start by selecting the correct form. On the form, you will write down information, such as your name and address, the income you earned, and the amount you paid in taxes. You will also follow the directions on the form and do some addition and subtraction.
2 PF- Sec. 1: What is important to know about yourself when making a career choice?
Writer: You should think about God's plan for your life, reflect on your God-given talents and skills, and consider many factors such as: job outlook, advancement opportunities, salary, and job fulfillment.
2 PF- Sec. 1: Name three or four public services that are made available through the revenue from taxes.
Writer: - Police and Fire Protection - Military - Public Libraries - Medical Research police and fire protection, military, public libraries, judges, food inspection, air traffic controllers, road maintenance, subsidized school lunches, bank regulation, and medical research.
2 PF- Sec. 2: In one to two sentences, list some deductions you may see on your paycheck stub.
Writer: You may find paycheck stub in 'Federal and State Income Tax' is the largest deduction from your paycheck. The money helps you pay for the military, roads, schools, police department, etc. 'Social Security Tax' is the amount that is sent to the government trust fund and set aside for retirement benefits.
W-2 form
a tax from that an employer sends to employees after the end of the year to list income and amount paid in taxes
capital gains
income earned by the sale of assets, such as stocks or property, which income is the difference between the price paid and the selling price
dependent
someone who depends on another individual for food, shelter, and other necessities, usually a child someone, usually a child, who depends on another individual for food, shelter, and other necessities
Review: rewards
something that causes or increases personal satisfaction
Review: risks
something that causes the possibility of a loss
net pay
take-home pay; the portion of the wages that the employee actually gets to take home
2 PF- Sec. 3: The deadline to file your tax forms is _____.
- December 31 - April 30 - January 1 - April 15 answer: - April 15
2 PF- Sec. 1: A career goal should be measurable, detailed, and include a plan.
- True - False answer: - True
2 PF- Sec. 1: Supply is the amount needed.
- True - False answer: - False
FICA
Federal Insurance Contributions Act, more commonly known as Social Security; a portion of wages is withheld and sent to the government trust fund and set aside for retirement benefits
commission
a fee paid to an employee for their sale or services, which fee is usually based on a percentage of the sale price
Review: salary
a fixed amount of money periodically paid to a person for work
W-4 form
a form prepared by an employee for the employer to specify exemptions and determine the amount of taxes to be withheld from the employee's paycheck
dividends
money paid to people who own stock in a company from the company's earnings money paid from a company's earnings to people who own stock in that company
Review: wages
money that is received for work
interest
money the bank gives you when you keep your money in one of their accounts
employee benefits
perks (extra benefits) that a company provides their employees; may include paying for health insurance or providing a retirement plan
Review: profit
revenue minus costs
Review: demand
the desire or need for a product or service
Review: revenue
the income a business makes
taxable income
the portion of income that is subject to being taxed
Review: costs
the price paid to acquire, produce, or accomplish something
2 PF- Sec. 1: Rick works off commission. He earns 10 percent of all manufacturing equipment he sells. If he made a sale of $9,000, how much was his commission?
- $90 - $900 - $9,000 - $100 answer: - $900
2 PF- Sec. 2: Diana's gross pay was $890 and her total deductions were $89. What is her net pay?
- $979 - $801 - $890 - $89 answer: - $89
2 PF- Sec. 3: Which is the shortest and simplest tax form?
- 1040 long form - 1040EZ - 1040A - 140E answer: - 1040EZ
2 PF- Sec. 2: What should you do with your paycheck stub?
- Send it to the IRS. - Give it back to your employer. - Save it for your records. answer: - Save it for your records.
2 PF- Sec. 3: What would happen if you didn't file taxes?
- The first time, the IRS would file for you and you'd owe more than you would have if you had filed yourself, plus penalties and interest. - The IRS would conduct an audit and you'd owe penalties and interest. - The first time, the IRS would probably overlook it. If they caught it, you'd face jail time, plus owe all the taxes and penalties and interest. - It's impossible to avoid filing taxes. answer: - The first time, the IRS would file for you and you'd owe more than you would have if you had filed yourself, plus penalties and interest.
2 PF- Sec. 1: Wages from an employer are the only source of income.
- True - False answer: - False
2 PF- Sec. 2: A paycheck stub documents just your gross pay.
- True - False answer: - False
IRS
Internal Revenue Service; a government agency that is responsible for collecting taxes
2 PF- Sec. 1: To help you decide on a career, you should _____.
- take a career test and prepare a graphic organizer - reflect on your God-given talents and skills, explore career options, apply the PACED decision-making process, and write goals - apply the PACED decision-making process and use salary as the criteria - gain knowledge about income and paying taxes answer: - apply the PACED decision-making process and use salary as the criteria
2 PF- Sec. 2: A group health plan that saves you money on health insurance is an example of a/an _____.
- tax - payment - employee benefit - bonus answer: - employee benefit
2 PF- Sec. 1: After the end of the year, you can expect to receive a form from your employer stating how much you earned and how much you paid in taxes for the year. This form is the _____.
- tax return form - W-4 form - W-2 form - 1099 answer: - W-2 form Remember that you complete a W-4 tax form when you start a new job. A W-2 tax form is sent to you by your employer to let you know how much you earned and how much you paid in taxes. You should use the information from the W-2 form when filling out your tax return form. There are three types of tax return forms: 1040EZ is the simplest form. It's most likely the form you will complete when you start working. 1040A is a little more difficult to complete than the 1040EZ. Use this if you have dependents. You may also use this form if you make less than $100,000 and you don't itemize deductions. 1040 is used if you don't qualify to use 1040EZ or 1040A.
2 PF- Sec. 3: The purpose of a W-4 form is to _____.
- tell the IRS how much money has been paid in taxes - inform your employer how much you paid in taxes at your previous job - let your employer know how much to take out of your paycheck for taxes - file a tax return answer: - inform your employer how much you paid in taxes at your previous job
2 PF- Sec. 3: In one to two sentences, explain why citizens pay taxes.
Writer: Citizens pay taxes so that the government can use the money to help grow the environment. They pay for the product that they need plus tax which will go to the government.
filing status
a category on tax forms that is closely tied to marital status; categories are: single, married, head of household, and widower
Medicare
a federal program that pays for health care for people age 65 and older
Review: entrepreneur
a person who takes a risk to create a new product or develop a better way to operate a business
Review: occupation
a person's usual work or business, a way of earning a living
tax return form
a tax form that an individual completes to calculate how much is owed to or refunded by the IRS
deduction
an amount that is subtracted
stockholder
an individual who owns one or more shares of stock in a joint stock company
Review: career
an occupation or profession that usually requires special training
2 PF- Sec. 1: Choose all that apply. Select each source of income. - a gift check from your great aunt - a check from your roommate for rent - interest deposited into your checking account - a few dollars your friend loaned you - the tip your client left you
answer: - a gift check from your great aunt - a check from your roommate for rent - interest deposited into your checking account - the tip your client left you
2 PF- Sec. 1: Tips are considered _____. - dividends - taxable income - gains - a bonus
answer: - taxable income
gross pay
earnings before deductions for work or from other sources, such as rent or investment an employee's total pay, including overtime pay, commissions, and bonuses before any deductions are made
Review: supply
the amount available
income
the money received for work or products sold and from other sources, such as rent or investments
2 PF- Sec. 1: Shawn made $32,500 last year. He is single with no children. He does not have any deductions to itemize. He should use the _____ to file his tax return.
- 1040EZ tax form - 1040A tax form - 1040 tax form - W-2 tax form answer: - W-2 tax form
2 PF- Sec. 1: Allison sells pharmaceuticals. She earns twelve percent of every sale. This is a _____.
- capital gain - commission - dividend - tip answer: - capital gain Remember that capital gains is the amount you earn from the sale of stock or property. A dividend is money a company sends people who own stock in the company. For most adults, a large majority of their income comes from their salary. A much smaller amount comes from interest, tips, dividends, or other sources of income.
2 PF- Sec. 1: Adults pay _____ taxes.
- community, sales, and income - sales, income, and retirement - income, property, and sales - property, sales, and city answer: - community, sales, and income For most adults, a large majority of their income comes from their salary. A much smaller amount comes from interest, tips, dividends, or other sources of income.
2 PF- Sec. 1: Floods, product failure, change in demand, and ineffective sales are all examples of _____.
- costs - rewards - risks - revenue answer: - risks
2 PF- Sec. 1: Susan bought some land. She sold it for $3,000 more than she paid for it. The $3,000 is an example of _____.
- dividends - interest - rent - capital gains answer: - capital gains
2 PF- Sec. 1: Select all that apply. The purpose of taxes is to _____.
- provide police protection - pay for roads and road maintenance - deduct money from your pay - provide air traffic controllers - provide judges and a court system answer: - provide police protection - pay for roads and road maintenance - provide air traffic controllers - provide judges and a court system
2 PF- Sec. 1: Employee salaries, equipment purchases, consultant fees, and legal fees are all examples of _____.
- risks - costs - revenues - rewards answer: - revenue
2 PF- Sec. 1: Theresa just graduated from high school. She is making career decisions. What criteria should she consider?
- salary, boss, benefits, and college tuition - revenue, supply and demand, and taxes - work location, salary, daily tasks, job satisfaction, work schedule, and job outlook - occupation, income, job outlook, variety, and taxes answer: - salary, boss, benefits, and college tuition
2 PF- Sec. 1: Select all examples of employee benefits.
- tax - stock purchase plan - commission - bonus - group health plan - tuition reimbursement answer: - stock purchase plan - tuition reimbursement Remember that employee benefits are perks that your company offers. Perks can include a retirement plan, health care coverage, stock purchase plan, or reimbursement for courses taken at a college. In order to receive these benefits, sometimes you pay a cost. This cost will appear as a deduction on your paycheck stub.
withholding allowances
an amount an individual enters on a W-4 form that helps an employer calculate the amount of income tax to subtract from an employee's paycheck