Personal Finance - Pay and Taxes
The current Medicare tax rate is...
1.45%
If you are paid BI-WEEKLY, how many times PER YEAR are you paid?
26 times a year
If you are payed WEEKLY, how many times PER YEAR are you paid?
52 times a year
The current OASDI/Social Security tax rate is...
6.2%
If an employee claims "Exempt" on the form described in #1 (W-4 form), what effect does this have on their taxes?
Exempt from federal withholding
Only the employee pays the MEDICARE TAX
False
Only the employee pays the OASDI/SOCIAL SECURITY TAX
False
FICA stands for...
Federal Insurance Contributions Act
The tax/government program provides hospital coverage for those over age 65 and younger with disabilities...
Medicare
OASDI stands for...
Old Age Survivors and Disability Insurance
List an example of a voluntary payroll deduction...
Retirement, Life insurance premiums, Health insurance premiums for medical, dental, and vision plans
There are two parts to FICA which are...
Social Security and Medicare
Net Pay is defined as...
The amount of pay remaining for insurance to employ after "taxes"
Gross Pay is defined as...
Total amount of money an employee receives before taxes and deductions
Only the employee pays the FEDERAL INCOME TAX
True
Only the employee pays the STATE INCOME TAX
True
What form is completed at the beginning of each new job and helps the employer determine the amount of federal tax to withhold from your paycheck?
W-4
