unit3- paychecks and taxes Flashcards
what is mandatory government spending
social security and medicare
what does “withholding” mean in reference to your paycheck?
how much is being taken out of your paycheck for things like taxes, employer sponsored insurance and retirement
when do you start paying income taxes?
when you make more then the minimum requirement
what is the 1040 form?
determines whether you owe additional taxes or are entitled to receive a refund (completed every april)
what form will determine how much money is withheld from your paycheck
w-4
the tax form that requires you to provide identification and proves you are eligible to work in the US
I-9
what is a dependent?
a person you support financially
what is the difference between mandatory spending and discretionary spending
mandatory is what the government has to pay, discretionary is what it wants to pay
what is the deadline to file your tax return?
april 18th
what does the federal government spend your tax dollars on?
education, transportation, military, national parks, etc
what is the w-2 form?
a summary of your earnings and withholding a for the year for a job; received by jan 31st
what is FICA
taxes that are used to pay for
social security and medicare programs
what is the 1099 form
you get this if you didn’t get taxes withheld so you’ll have a large tax bill coming
what is the 1044 form?
the IRS form that you used to file tax returns
what can you find on a pay stub
wages of salary, gross pay, net pay, deductions and taxes, your year-to-date earnings, pay period
what other taxes do employers withhold and send to taxing authorities?
state tax, federal tax, county tax, state tax
pay period
length of time employees pay wages
year-to-date
accumulated deductions for year
social security
helps provide retirement income for the elderly and disabled
medicare
healthcare program for the elderly and disabled
FICA
federal insurance combination act
what is a sales tax
a tax on purchased goods and services, also called consumption tax
what stares do not have sales tax?
Montana, Delaware, Alaska, New Hampshire, and Oregon
what are sales taxes used to fund?
local government, public schools, children’s health insurance
payroll tax
a tax in earned income that supports the social security and medicare programs (also known as FICA)
property tax
a tax on property auch as house, buildings, mobile homes, and motor vehicles
excise tax
taxes collected from seller or retailer and remains hidden in the price of the product
