Understanding Paychecks, Benefits, Employee Taxes, and Tax Returns MONEY MANAGEMENT UNIT 2 – Test Review Understanding Paychecks, Benefits, Employee Taxes, and Tax Returns

CHAPTER FIVE Persons claimed that reduce the amount of tax withheld from your paycheck. ALLOWANCES When you report to work, you will be asked to fill out a form declaring how many allowances you are going to claim. What is that form called? W-4

If you do not have to have ANY federal income tax withheld from your income tax you are _________________. EXEMPT A permanent work identification number. All American workers should have one: SOCIAL SECURITY NUMBER A social insurance program that covers the nation’s work force. It provides retirement, disability and survivor benefits to those qualified. SOCIAL SECURITY

Your employer must mail you your W-2 by what date? Lists income that you received during the year and all the amounts withheld from your paycheck. Mailed to you by your employer. W-2 Form Your employer must mail you your W-2 by what date? JANUARY 31ST When do you have to have your federal income tax return filed by? APRIL 15th What is the name of the employment law that set the minimum wage and the rules regarding overtime. FAIR LABOR STANDARDS ACT

What year was the Social Security Act put in place? 1935 Which president signed that law into effect? FRANKLIN D. ROOSEVELT Federally mandated program that provides that every state must have a program in place to protect workers who lose their job through no fault of their own. UNEMPLOYMENT COMPENSATION

The legally established lower limit on wages that employers must pay. MINIMUM WAGE Number of hours in the standard work week. 40 HOURS Employers must pay hourly employees extra money for working more than 40 hours. That rate is: 1 ½ TIMES THEIR REGULAR PAY RATE

The name for laws that give financial security to worker’s and their families for injuries, illness, loss of income, or death that occurs as a result of your job or working conditions. WORKER’S COMPENSATION The concept that employers are liable for accidents that occur at work even if it isn’t their fault is known as: “LIABILITY WITHOUT FAULT”

CHAPTER SIX The total pay before any deductions are made is known as GROSS PAY _________________ is defined as hours worked beyond regular hours. OVERTIME Amounts subtracted from your gross pay: DEDUCTIONS

Company provided supplements to income are known as: The amount left when all the deductions are subtracted from your gross pay: NET PAY Company provided supplements to income are known as: BENEFITS A plan that allows employees to receive a portion of the company’s profits. PROFIT-SHARING

Employer provided retirement plan. Extras that companies offer to improve employee morale and working conditions. Examples might include store discounts, company car etc…. PERKS When employers allow you to leave your job, without pay, for a period of time with a guarantee that you will get your job back. LEAVE OF ABSENCE Employer provided retirement plan. PENSION

CHAPTER SEVEN Largest source of government revenue is: INCOME TAX Taxes that increase in proportion to your income are known as: PROGRESSIVE TAXES An example of a progressive tax that we discussed in class. FEDERAL INCOME TAX

Taxes that decrease in proportion to income: REGRESSIVE TAXES An example of a regressive tax that we discussed in class: SALES TAX OR EXCISE TAX Taxes where the % taxes stays constant even though the amount being taxed increases PROPORTIONAL TAXES An example of a proportional tax that we discussed in class: PROPERTY TAX

The power to levy taxes rests with: Administrative agency in charge of collecting income taxes and enforcing tax laws: INTERNAL REVENUE SERVICE The power to levy taxes rests with: CONGRESS (makes the law) AND THE PRESIDENT (signs the law) When the government spends more than it brings in with revenue it has a: DEFICIT When the government brings in more than it spends it has a: SURPLUS Easiest tax form to fill out: 1040EZ

STUDY, STUDY, STUDY Ok…. These were the easy ones! You have three chapters of notes to review! Don’t forget to study!