Unit 02 - Careers and Incomes

David's gross pay was $450, and his total deductions were $49. What is his net pay?

$401

Diana's gross pay was $890 and her total deductions were $89. What is her net pay?

$801

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?

$900

Which is the shortest and simplest tax form?

1040EZ

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

true or false: You should not use the PACED decision-making process to make career choices. It should mostly be used for financial decisions.

false

Matt expects to get his first paycheck today. What deductions may be listed on his paycheck stub?

federal tax state tax Medicare Social Security

Tips, bonuses, and capital gains are all _____.

sources of income

If you have questions about taxes, where can you go to get answers?

the official IRS website

true or false: Supply and demand affect career wages.

true

true or false: Taking a self-assessment test is a good way to learn about your self and careers that are suitable for you.

true

true or false: The government uses the revenue from taxes to pay for goods and services for the community.

true

true or false: The local government uses property taxes to pay for goods and services in the community.

true

true or false: Supply is the amount needed.

False

What part of the government does income tax usually support?

Federal government and/or state government

If you wanted to find the job description for a certain job, where should you look?

Web sites or books about careers

What is important to know about yourself when making a career choice?

What are you good at, but, a little more important than that, what do you love?

When a company makes earnings or a profit, and they share this profit with the stockholders, it's called _____.

dividends

Select all of the factors that affect income: education skills college courses experience supply and demand type of car you drive

education skills experience supply and demand

A group health plan that saves you money on health insurance is an example of a/an _____.

employee benefit

The company you work for deposits money into your retirement plan. This is an example of a/an _____.

employee benefit

When weighing your employment options, consider _____.

employee benefits

true or false: Making a career decision is simple, and it's not necessary to use a process.

false

To become an architect, you need six years of education. To become a physical therapist, you need two years of education. Which career do you think pays a higher salary?

architect

Allison sells pharmaceuticals. She earns twelve percent of every sale. This is a _____.

commission

Adults pay taxes so that _____.

the government can pay for public services, such as road maintenance, public libraries, schools, and police departments

true or false: There are five steps in the PACED decision-making process.

true

Money received for work is/are _____.

wages

Name three or four public services that are made available through the revenue from taxes.

1. New roads 2. Medical help (building of public hospitals) 3. Public education 4. Police/fireman

Select the activities that can help you decide and plan your career path.

1. exploring career options 2. taking a self-assessment or career test 3. using the PACED decision-making process 4. writing goals

Select all deductions that may be taken on your paycheck: 1. federal taxes 2. Medicare 3. Social Security 4. interest on your savings account 5. state taxes 6. amount you pay for health insurance

1. federal taxes 2. Medicare 3. Social Security 5. state taxes 6. amount you pay for health insurance

Select the different types of taxes: 1. sales 2. property 3. elective 4. income 5. voluntary

1. sales 2. property 4. income

Select sources of income: 1. wages from your job 2. a rent check from someone renting a property you own 3. interest deposited into your savings account 4. commission for a sale

1. wages from your job 2. a rent check from someone renting a property you own 3. interest deposited into your savings account 4. commission for a sale

Lauren is starting her own business-a coffee shop. Select all of her risks. 1. location 2. rent 3. an employee injury 4. theft 5. fire

3. an employee injury 4. theft 5. fire

The deadline to file your tax forms is _____.

April 15

How do cities and towns get money to pay for places and services for the community?

Cities and towns collect property taxes.

In one to two sentences, explain why citizens pay taxes.

Citizens pay taxes so that they can receive public services, such as medical help, police and fireman, new roads, etc.

If you wanted to find out what the average salary is for a certain occupation, what could you do?

Google it

Grace wants to be an astronaut. Which of the following goals would be appropriate for her?

I will become an astronaut by completing an undergraduate degree in aerospace engineering and a doctoral degree in biology. I will attain this goal by age 30.

Grace wants to become a manager at the bank where she is currently a teller. Which of the following goals would be appropriate for her?

I will take management courses at a local business college so that I will be promoted to bank manager in less than five years.

In one or two sentences, describe some rewards of starting your own business.

If the business is successful, you alone reap the benefits and also dictate your own work hours. You don't have to rely on others to get work done.

What is Form 1040?

If you do not qualify to use the 1040EZ or 1040A, use this form.

In three to four sentences, describe why CEOs (the chief executive officers, that is, the leaders of large companies) make very high salaries, while their administrative assistants make much less.

In order to become a CEO that will make your business continue to thrive requires a couple of things. First, it requires knowledge of supply and demand and how business is best and most efficiently conducted. Second, it needs experience. One cannot become a CEO if they have no experience in business. It is because that being a CEO has so many requirements that the pool of people who can fulfill that role is very small, and so much be paid a lot as compensation for taking such a difficult job, while being an assistant doesn't require the same amount of education or experience.

What is Form 1040EZ?

It is for people under age 65 with no dependents and no itemized deductions who make no more than $100,000.

In one to two sentences, list some deductions you may see on your paycheck stub.

One may see deductions on their paycheck stub courtesy of things such as taxes (such as Medicare, social security and income taxes), costs for insurance (such as health or disability insurance), and/or money that you set aside for retirement.

What is Form 1040A?

Only a little more difficult to complete than the 1040EZ, you use this if you do have dependents. You may use this form if you make less than 100,000 and you don't itemize deductions.

What should you do with your paycheck stub?

Save it for your records.

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?

She should probably consult the IRS website, but asking someone who has been doing taxes for many years (such as her parents) wouldn't be a terrible idea either.

Michael bought a new car. The sticker price was $6,100. He decided not to buy a warranty or any upgrades to the car. However, he ended up paying much more. Why?

Taxes, insurance,

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.

An employer takes a deduction from your paycheck for federal taxes. Where does this money go?

The money is sent to the federal government to pay for goods and services for the community.

true or false: A career goal should be measurable, detailed, and include a plan.

True

true or false: People's income is affected by choices they have made about careers, education, and skill development.

True

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 _____.

W-2 form

Molly is getting ready to file her tax return. She works and has a savings account. What tax forms does she need?

W-2 form from her employer, tax forms from the bank, and a tax return form

Commission is___

a fee paid to an employee for their sale or services

A withholding allowance is _____.

an amount you enter on a W-4 form

An example of a risk is _____.

an employee injury

Mr. Stanley started a new business and created a product that raises the standard of living for people who use wheel chairs. Mr. Stanley would be considered _____.

an entrepreneur

Richard bought stock for $200 and sold it for $300. The $100 he earned is an example of _____.

capital gains

Susan bought some land. She sold it for $3,000 more than she paid for it. The $3,000 is an example of _____.

capital gains

When you receive your paycheck stub, you should _____.

check it to make sure it is correct and save it for your records

What part of the government does property tax usually support?

city government

Employee salaries, equipment purchases, consultant fees, and legal fees are all examples of _____.

costs

Work environment is one _____ that you could consider when making a career decision.

criteria

April 15 is the _____.

deadline to file your tax return

Rachel's paycheck stub shows an amount that was subtracted from her pay for health insurance. This is a _____.

deduction

Lisa owns stock in Company ABC. Company ABC sent out an earnings report and gave each of the stockholders an amount of money based on how much stock they owned. This is a _____.

dividend

Some factors that affect income are _____.

education, skills, supply and demand, and experience

An example of an ongoing cost is _____.

employee salaries

To help you decide on a career, you should _____.

explore career options, take a self-assessment, apply the PACED decision-making process, and write goals

Adrianna will be a college freshman soon and she is struggling to make a career choice. Which activities will help her?

exploring careers reflecting on skills, interests, values, and personality traits using the PACED decision-making process taking a career test

true or false: A paycheck stub documents just your gross pay.

false

true or false: Everyone should try to be an NFL quarterback because they earn so much money.

false

true or false: Interest you receive from a bank is not considered income.

false

true or false: Salary is the most important factor when choosing a career path.

false

true or false: Wages from an employer are the only source of income.

false

true or false: When the revenue for a business is less than its costs, it is making a profit.

false

The federal government relies mostly on revenue from _____.

income taxes

Adults pay _____ taxes.

income, property, and sales

Select each source of income. 1. a gift check from your great aunt 2. a check from your roommate for rent 3. interest deposited into your checking account 4. a few dollars your friend loaned you 5. the tip your client left you

interest deposited into your checking account interest deposited into your checking account

When making a career decision, you should reflect on your _____.

interests skills values personaity traits

The purpose of a W-4 form is to _____.

let your employer know how much to take out of your paycheck for taxes

A dividend is _____.

money a company shares with the stockholders

An example of a cost is _____.

principal and interest on loans

The purpose of taxes is to _____.

provide police protection pay for roads and road maintenance provide judges and a court system provide air traffic controllers

Floods, product failure, change in demand, and ineffective sales are all examples of _____.

risks

When an individual starts a new business there are _____.

risks and costs

An example of a cost would be _____.

salaries

There are many different sources of income. Usually, most of an adult's income comes from _____.

salary

Your career choice, education, and skills will affect your _____.

salary

Jeff works as a computer repair technician. He has money in a savings account and he owns some stock. What types of income does he have?

salary (from working), interest (from his bank account), and dividends (profit from his stocks)

Simon just completed and double-checked his 1040EZ tax return form. Now he should _____.

send it to the IRS before April 15th

One reward of starting your own business is _____.

setting your own work schedule

The 1040EZ is the _____.

shortest and simplest tax return form

What part of the government does sales tax usually support?

state government

Select all examples of employee benefits.

stock purchase plan bonus group health plan tuition reimbursement

Tips are considered _____.

taxable income

Sales, property, and income are three types of _____.

taxes

An example of a risk would be _____.

theft

true or false: A graphic organizer helps you visualize what is needed to reach your career goals.

true

true or false: A job that is in demand is a job with a good outlook.

true

true or false: A risk is something that causes the possibility of a loss.

true

true or false: An entrepreneur takes a risk to create a new product or a better way to operate a business.

true

Theresa just graduated from high school. She is making career decisions. What criteria should she consider?

work location, salary, daily tasks, work schedule, and job outlook

Select all the criteria you could use when applying the PACED decision-making process to career decisions. work schedule location the boss salary prestige

work schedule location salary

Exempt means _____.

you are free from deducting federal income tax from paychecks