Parks Test

What does FICA consist of?

Social Security & Medicare

What are examples of discretionary spending?

Military, National Parks maintenance, schools, welfare, food stamps, science

What is the difference between gross pay and net pay?

Gross pay is before taxes and deductions; Net pay is take-home pay

What are Pre-Tax Deductions and Contributions?

Contributions taken out of your paycheck BEFORE taxes are calculated

What are two examples of Employer Contributions?

Health Insurance & 401k

The W-4 form

The form lets employers know how much money to withhold from an employee's paycheck for taxes, it is filled out when starting a new job

If someone gets married and plans to file jointly, what should they do with their W-4?

Request to fill out a new W-4 from his employer

What information is NOT required on a W-4 form?

Earned income from a previous job

When should you receive your W-2 form from your employer?

By January 31st

Which should you use when creating a budget - NET PAY or GROSS PAY?

Net Pay

What is the purpose of a 1040 form?

File your annual income tax return

Which deduction is LEAST likely to be taken out of a high school student's paycheck?

Health insurance premium

Which committee in the House of Representatives handles all tax bills?

Ways and Means

What are two mandatory spending categories funded by FICA taxes?

Social Security and Medicare

What is the amount of money left after withholdings on a pay stub?

Net Pay

What is discretionary government spending?

A changing amount of money spent on different categories each year

If your tax deadline extension is approved, what is your new deadline month?

October

Why is it important to fill out a W-4 form correctly?

Incorrect completion can result in under or overpayment of taxes

What is the best tax preparation method if you want to pay as little as possible but avoid mistakes?

Online tax preparation service

What is the purpose of the self-employment tax (SECA)?

To tax self-employed individuals the same for Social Security & Medicare

What tax rate increases as income increases?

Progressive tax