Chapter 3

Question 1

deductions

Answer 1

amounts withheld from gross pay

Question 2

mandatory deductions

Answer 2

required deductions FIT/SIT FICA/FUTA

Question 3

voluntary deductions

Answer 3

Insurance retirement plans medical plans cafeteria plans FSA/HSA Charity

Question 4

Wage Garnishments

Answer 4

deductions ordered by the court

Question 5

Taxable Pay

Answer 5

the amount of pay that is taxable

Question 6

Retirement plans may

Answer 6

not have FIT but may have FICA/FUTA

Question 7

Medical Plans

Answer 7

are Non tax

Question 8

care benefits,, meal plans, FSA.HSA are

Answer 8

Non tax

Question 9

Union Dues, Charity, garnishment are

Answer 9

taxable

Question 10

Income tax withholding system

Answer 10

Pay as you go method

Question 11

Current Tax Payment act of 1943

Answer 11

went from paying taxes in the following year to paying as income is earned. Implemented Employer withholding.

Question 12

Wage bracket tax withholding

Answer 12

based on marital status, withholding allowances, and taxable pay.

Question 13

Deceased and terminated employees

Answer 13

Payments after date of death are non taxable to employee

Question 14

Terminated employees are subject

Answer 14

to all normal taxes

Question 15

Changing a W4

Answer 15

within 10 days required for divorce or reducing withholding allowances