2. Jeopardy Don’tTake All My Money Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy

3. $100 Question from Don’t Find the deductions and net pay. Social Security is 6.2% of the first $90,000. Medicare is 1.45% of all income. Use the tax tables on pages 788-791 for federal tax. The state tax is 2% of gross pay and the local tax is 1.5% of gross pay. Don Chapman, single, 1 allowance General Check Information DeptEmployeeCheck #Week EndingGross PayNet Pay 23Chapman, D.4323/5$640.00 Tax and Personal Deductions FITFICAMedicareStateLocalMedicalUnion DuesOthers 10.00

4. $100 Answer from Don’t General Check Information DeptEmployeeCheck #Week EndingGross PayNet Pay 23Chapman, D.4323/5$640.00$485.64 Tax and Personal Deductions FITFICAMedicareStateLocalMedicalUnion DuesOthers 73.0039.689.2812.809.6010.00--

5. $200 Question from Don’t True or False. Explain your reasoning. Medicare taxes are paid on all earnings.

6. $200 Answer from Don’t TRUE Social Security is the one that taxes only up to $90,000 of income.

7. $300 Question from Don’t Find the deduction for group insurance PER PAY PERIOD. J. McDonald is a jeweler. She earns an annual salary of $40,000. Her annual medical insurance costs $4,300. Her employer pays 70 percent of the costs. How much is deducted each week from her pay check?

8. $300 Answer from Don’t $4300 * 0.30 = $1290 $1290/52 = $24.81

9. $400 Question from Don’t True or False. Explain your reasoning. It is not possible to have zero withholding allowances when calculating income tax.

10. $400 Answer from Don’t False – You can claim zero allowances. Look at the tables on pages 788-791. There is a column for zero allowances.

11. $500 Question from Don’t Use the tables on pages 788-791 when needed. Find the amount withheld for Federal Income Tax. J. Williams Married Earns $40,000 annually 2 Allowances

12. $500 Answer from Don’t Have to convert to weekly pay first: $40,000/52 = $769.23 FIT withheld: $59.00

13. $100 Question from Take Stacey Peralta was hired on January 2 for the supervisory position. She earns a salary of $98,000 and is paid monthly. How much is withheld in December for Social Security and Medicare? How much is withheld total?

14. $100 Answer from Take 1 st – How much did she earn in December: $98,000/12 = $8166.67 2 nd – Find Social Security: Is her annual amount over $90,000? Yes. $8,000 over. $8166.67-$8000 = $166.67 $166.67 * 0.062 = $10.33 3 rd – Find Medicare: $8166.67 * 0.0145 = $118.42 4 th – Total withheld: $10.33 + $118.42 = $128.75

15. $200 Question from Take Find the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below. State Tax Taxable WagesTax Rate First $1,0001.5% Next $2,0003.0% Next $2,0004.5% Over $5,0005.0% Annual salary: $95,000 Married, one dependent Paid weekly

16. $200 Answer from Take From table on pg 123: Married Exemption: $4,000 and Each Dependent: $2,000. $4,00 + $2,000 = $6,000 can’t be taxed. $30,000-$6,000 = $24,000 to be taxed $1,000 * 0.015 = $15 $2,000 * 0.03 = $60 $2,000 * 0.045 = $90 ($24,000 - $5,000) * 0.05 = $950 $15 + $60 + $90 + $950 = $1115. $1115/52 = $21.44

17. $300 Question from Take Describe a scenarios when a young, healthy person would need health insurance.

18. $300 Answer from Take Answers vary

19. $400 Question from Take Use the Personal Exemptions table on page 119 if necessary. Dale Young is a physical therapist. He earns $49,830 a year and takes a personal exemption for being single. The state income tax rate is 5% of taxable income. What amount is withheld yearly for state income tax?

20. $400 Answer from Take $49,830 - $2,000 = $47,830 $47,830 * 0.05 = $2,391.50

21. $500 Question from Take Find the Social Security and Medicare taxes withheld per pay period: R. Greenblat Annual Gross Pay: $32,231 Pay Periods per year: 26

22. $500 Answer from Take $32,231/26 = $1239.65 Social Security: $1239.65 * 0.062 = $80.58 Medicare: $1239.65 * 0.0145 = $17.98

23. $100 Question from All Find the state tax withheld using the table below: Al Masters earns $22,500 as a lab technician. He is single with 1 dependent. The state tax in his state is 5% of taxable income. What amount is withheld from each of his monthly paychecks for state income tax? Personal Exemptions Single$1,500 Married$3,000 Each Dependent $1,500

24. $100 Answer from All With a single and 1 dependent exemption: $1,500 + $1,500 = $3,000 $22,500 - $3,000 = $19,500 $19,500 *.05 = $975 $975/12 = $81.25

25. $200 Question from All True or False. Explain your reasoning. Federal Income Tax is handled by the Federal Bureau of Investigation.

26. $200 Answer from All False FIT is handled by the IRS (Internal Revenue Service)

27. $300 Question from All Name a state that doesn’t have state income tax.

28. $300 Answer from All Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

29. $400 Question from All Use the tables on pages 788-791 when needed. Find the amount withheld for Federal Income Tax. S. Sheeks Single Weekly Gross Income: $330.00 Claims 3 Allowances

30. $400 Answer from All $10

31. $500 Question from All Find the state tax withheld using the table below: Queena Kimbrell earns $32,000 per year as a journalist. She is single. The state tax rate in her state is 2% of taxable income. What amount is withheld from each of her monthly paychecks for state income tax? Personal Exemptions Single$1,500 Married$3,000 Each Dependent $1,500

32. $500 Answer from All $32,000 - $1,500 = $30,500 $30,500 * 0.02 = $610 $610/12 = $50.83

33. $100 Question from My Find the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below. State Tax Taxable WagesTax Rate First $1,0001.5% Next $2,0003.0% Next $2,0004.5% Over $5,0005.0% Annual salary: $24,400 Single Paid semimonthly

34. $100 Answer from My From table on pg 123: $2,000 single exemption $24,400 - $2,000 = $22,400 to be taxed $1,000 * 0.015 = $15 $2,000 * 0.03 = $60 $2,000 * 0.045 = $90 ($22,400 - $5,000) * 0.05 = $870 $15 + $60 + $90 + $870= $1,035. $1035/24 = $43.13

35. $200 Question from My Use the tables on pages 788-791 to find the amount withheld. Kristen Martinez is married, earns $252.75 a week, and claims 1 allowance. What amount is withheld weekly for federal income tax?

36. $200 Answer from My $4

37. $300 Question from My List one reason why most states charge a state income tax?

38. $300 Answer from My States charge taxes to pay for police and fire protection, public schools, roads, libraries, inspection of foods, etc.

39. $400 Question from My Personal Exemptions Single$2,000 Married$4,000 Each Dependent$2,000 State Tax Annual Gross PayTax Rate First $3,5003.0% Next $3,5004.5% Over $7,0007.0% Anita Muzquiz’s annual gross pay is $45.520. She is married with 2 dependents. How much is withheld from her biweekly paycheck for state income tax?

40. $400 Answer from My Exemptions: $4,000 (married) + $2,000 (2 dependents) $45,520 - $8,000 = $37,520 to be taxed $3,500 * 0.03 = $105 $3,500 * 0.045 = $157.50 ($37,520 -$7,000) * 0.07 = $2,136 $105 + $157.50 + $2136.40= $2,398.90 $2,398.90/26 = $92.27

41. $500 Question from My Find the deduction per pay period. Annual cost of insurance: $6,8000 Employer pays 75% 24 pay periods

42. $500 Answer from My $6,800 * 0.25 = $1,700 $1,700/24 = $70.83

43. $100 Question from Money Catherine Parker, a clerk at La Mirage Motel, earns $342.22 weekly. Her group medical insurance costs $2,650 a year, of which the company pays 70% of the costs. How much is deducted weekly from her paycheck for medical insurance?

44. $100 Answer from Money $2,650 * 0.3 = $795 $795/52 = $15.29

45. $200 Question from Money What is one reason why Social Security is collected?

46. $200 Answer from Money Funds collected finance the retirement, disability, and life insurance of the federal government’s Social Security program.

47. $300 Question from Money Lynn Golding is employed as a payroll supervisor and earns $18.00 and works 40 hours a week. She is married and claims 6 allowances. The state tax is 3% of gross earnings and the local tax is 1.5% of gross earnings. She pays $35.00 for medical insurance and $17.00 in union dues. Find the deductions and net pay per week. General Check Information DeptEmployeeCheck #Week EndingGross PayNet Pay PAYRLynn G.23512/11 Tax and Personal Deductions FITFICAMedicareStateLocalMedicalUnion DuesOthers 0.00

48. $300 Answer from Money General Check Information DeptEmployeeCheck #Week EndingGross PayNet Pay PAYRLynn G.23512/11720.00$560.52 Tax and Personal Deductions FITFICAMedicareStateLocalMedicalUnion DuesOthers 20.0044.6410.4421.6010.8035.0017.000.00

49. $400 Question from Money Find the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below. State Tax Taxable WagesTax Rate First $1,0001.5% Next $2,0003.0% Next $2,0004.5% Over $5,0005.0% Annual salary: $30,000 Married, 1 dependent Paid weekly

50. $400 Answer from Money From table on pg 123: $4,000 married exemption + $2000 dependent = $6,000 $30,000 - $6,000 = $24,000 to be taxed $1,000 * 0.015 = $15 $2,000 * 0.03 = $60 $2,000 * 0.045 = $90 ($24,000 - $5,000) * 0.05 = $950 $15 + $60 + $90 + $950= $1,115. $1115/52 = $21.44

51. $500 Question from Money Find the Social Security and Medicare taxes withheld per pay period: A. Tomine Annual Gross Salary: $20,235 Pay Periods per year: 24

52. $500 Answer from Money Social Security: $20,235 * 0.062 = $1,254.57 1254.57/24 = $52.27 Medicare: $20,235 * 0.0145 = $293.41 293.41/24 = $12.23

53. Final Jeopardy Each year the Tax Foundation determines how much of the year the average person works to just pay taxes. How many months does the average person work just to pay taxes?

54. Final Jeopardy Answer 5 months out of the year