unit 9, federal taxes and records Flashcards
when was FICA enacted
august 14, 1935
what does FICA stand for
federal insurance contributions act
what is FICA known as
social security
what in the government enact in 1965
medicare
what is the current rate of of an employees earnings for social security
7.65%
what amount is the ceiling for social security
63,000
what is the medicare tax
1.47% of the 7.65%
about how many workers support one social security recipient
three workers
the united states governments receives much of the funds for government expenditures through:
federal income tax
what amendment stated that taxes did not have to be levied in proportion to state population
amendment 16
tax that means as the taxable income increases, the income tax rate also increases
progressive tax
the employer determines the number of exemptions to which the employee is entitled
W-4 form ( employees withholding allowance certificate)
before an income tax return can be filled out, the employee needs a copy of his:
W-2 form (Wage and tax statement)
three types of federal income tax forms
1040EZ, 1040A and 1040
This is the simplest form and is designed for those with straightforward tax situations
1040EZ
