Paychecks and Taxes
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Per pay period, he pays $63.08 into federal withholding, $33.21 into state withholding, and $42.05 into FICA. What is Bob's net pay?
$501.66
What is a pay period?
A schedule by which employers pay their employees
Type of pay method that allows employers to automatically deposit an employee's paycheck in the employee's bank account.
Direct Deposit
Tax on certain items such as gas, hotel rooms, and airline tickets.
Excise Tax
All deductions are required.
False
Gross pay results from deducting various deductions from your earnings.
False
Overtime wages are always calculated at twice the regular hourly rate.
False
What is an employee required to complete when beginning a new job?
Form W-4
What is the difference between gross pay and net pay?
Gross pay is before taxes; net pay is after taxes.
Type of tax determined by earned and unearned income.
Income Tax
Helps to pay for health care for senior citizens.
Medicare
Tax on property such as land, buildings, and motor vehicles.
Property Tax
Purpose of this tax is to provide income for people who are retired or have disabilities.
Social Security
A payroll card would be a good payment option for someone that did not have a bank account.
True
FICA is a required deduction, regardless of the state you live in.
True
The amount left after all deductions have been subtracted from gross pay is known as net pay.
True
There are 2 parts to FICA: Medicare and Social Security
True
