Taxes & Fundamentals of Algebra Unit 1

List 4 common payroll deductions.

Taxes, insurance, FICA, retirement.

How do you calculate net pay?

Net Pay = Gross Pay - Deductions

What are the top categories for state spending?

Education and healthcare

What is the difference between above-the-line deductions, itemized deductions, and the standard deduction?

Above line / taken first, then choose the greater of.

Itemized or standard, never both.

What happens if your W-2 states less money was withheld from your paycheck than you owe?

Have to pay the rest to the IRS

What is the difference in wages and salary?

Wages paid hourly, salary paid yearly.

Who completes a W-4 form?

W-4: New Employee

How do payroll taxes and income taxes compare?

Payroll - FICA, Set %, based on wages.

Income - funds government, increases with income.

What is the difference between progressive, regressive, and proportional taxes?

Progressive - More money made, more taxes / Regressive - More money, less taxes / Proportional - everyone pays same %

Who receives a 1099?

Independent contractors / unemployment benefits / interest / dividend

Compare standard and itemized personal deductions.