MONEY MONEY MANAGEMENTMANAGEMENT

UNIT 2 – Test ReviewUNIT 2 – Test ReviewUnderstanding Paychecks, Benefits, Understanding Paychecks, Benefits, Employee Taxes, and Tax ReturnsEmployee Taxes, and Tax Returns

Persons claimed that reduce the amount Persons claimed that reduce the amount of tax withheld from your paycheck.of tax withheld from your paycheck. ALLOWANCESALLOWANCES

When you report to work, you will be When you report to work, you will be asked to fill out a form declaring how asked to fill out a form declaring how many allowances you are going to claim. many allowances you are going to claim. What is that form called?What is that form called? W-4W-4

CHAPTER FIVE

If you do not have to have ANY federal income If you do not have to have ANY federal income tax withheld from your income tax you are tax withheld from your income tax you are _________________._________________. EXEMPTEXEMPT

A permanent work identification number. All A permanent work identification number. All American workers should have one:American workers should have one: SOCIAL SECURITY NUMBERSOCIAL SECURITY NUMBER

A social insurance program that covers the A social insurance program that covers the nation’s work force. It provides retirement, nation’s work force. It provides retirement, disability and survivor benefits to those disability and survivor benefits to those qualified.qualified. SOCIAL SECURITYSOCIAL SECURITY

Lists income that you received during the year Lists income that you received during the year and all the amounts withheld from your and all the amounts withheld from your paycheck. Mailed to you by your employer.paycheck. Mailed to you by your employer. W-2 FormW-2 Form

Your employer must mail you your W-2 by what Your employer must mail you your W-2 by what date?date? JANUARY 31STJANUARY 31ST

When do you have to have your federal income When do you have to have your federal income tax return filed by?tax return filed by? APRIL 15thAPRIL 15th

What is the name of the employment law that set What is the name of the employment law that set the minimum wage and the rules regarding the minimum wage and the rules regarding overtime.overtime. FAIR LABOR STANDARDS ACTFAIR LABOR STANDARDS ACT

What year was the Social Security Act put What year was the Social Security Act put in place?in place? 19351935

Which president signed that law into Which president signed that law into effect?effect? FRANKLIN D. ROOSEVELTFRANKLIN D. ROOSEVELT

Federally mandated program that provides Federally mandated program that provides that every state must have a program in that every state must have a program in place to protect workers who lose their job place to protect workers who lose their job through no fault of their own.through no fault of their own. UNEMPLOYMENT COMPENSATIONUNEMPLOYMENT COMPENSATION

The legally established lower limit on The legally established lower limit on wages that employers must pay. wages that employers must pay. MINIMUM WAGEMINIMUM WAGE

Number of hours in the standard work Number of hours in the standard work week. week. 40 HOURS40 HOURS

Employers must pay hourly employees Employers must pay hourly employees extra money for working more than 40 extra money for working more than 40 hours. That rate is:hours. That rate is: 1 ½ TIMES THEIR REGULAR PAY RATE1 ½ TIMES THEIR REGULAR PAY RATE

The name for laws that give financial The name for laws that give financial security to worker’s and their families for security to worker’s and their families for injuries, illness, loss of income, or death injuries, illness, loss of income, or death that occurs as a result of your job or that occurs as a result of your job or working conditions. working conditions. WORKER’S COMPENSATIONWORKER’S COMPENSATION

The concept that employers are liable for The concept that employers are liable for accidents that occur at work even if it isn’t accidents that occur at work even if it isn’t their fault is known as: their fault is known as: ““LIABILITY WITHOUT FAULT”LIABILITY WITHOUT FAULT”

CHAPTER SIXCHAPTER SIX

The total pay before any deductions are The total pay before any deductions are made is known asmade is known as GROSS PAYGROSS PAY

_________________ is defined as hours _________________ is defined as hours worked beyond regular hours.worked beyond regular hours. OVERTIMEOVERTIME

Amounts subtracted from your gross pay:Amounts subtracted from your gross pay: DEDUCTIONSDEDUCTIONS

The amount left when all the deductions The amount left when all the deductions are subtracted from your gross pay:are subtracted from your gross pay: NET PAYNET PAY

Company provided supplements to income Company provided supplements to income are known as:are known as: BENEFITSBENEFITS

A plan that allows employees to receive a A plan that allows employees to receive a portion of the company’s profits.portion of the company’s profits. PROFIT-SHARINGPROFIT-SHARING

Extras that companies offer to improve Extras that companies offer to improve employee morale and working conditions. employee morale and working conditions. Examples might include store discounts, Examples might include store discounts, company car etc….company car etc…. PERKSPERKS

When employers allow you to leave your job, When employers allow you to leave your job, without pay, for a period of time with a guarantee without pay, for a period of time with a guarantee that you will get your job back.that you will get your job back. LEAVE OF ABSENCELEAVE OF ABSENCE

Employer provided retirement plan. Employer provided retirement plan. PENSIONPENSION

CHAPTER SEVENCHAPTER SEVEN

Largest source of government revenue is:Largest source of government revenue is: INCOME TAXINCOME TAX

Taxes that increase in proportion to your Taxes that increase in proportion to your income are known as:income are known as: PROGRESSIVE TAXESPROGRESSIVE TAXES

An example of a progressive tax that we An example of a progressive tax that we discussed in class.discussed in class. FEDERAL INCOME TAXFEDERAL INCOME TAX

Taxes that decrease in proportion to income:Taxes that decrease in proportion to income: REGRESSIVE TAXESREGRESSIVE TAXES

An example of a regressive tax that we An example of a regressive tax that we discussed in class:discussed in class: SALES TAX OR EXCISE TAXSALES TAX OR EXCISE TAX

Taxes where the % taxes stays constant even Taxes where the % taxes stays constant even though the amount being taxed increases though the amount being taxed increases PROPORTIONAL TAXESPROPORTIONAL TAXES

An example of a proportional tax that we An example of a proportional tax that we discussed in class:discussed in class: PROPERTY TAXPROPERTY TAX

Administrative agency in charge of collecting Administrative agency in charge of collecting income taxes and enforcing tax laws:income taxes and enforcing tax laws: INTERNAL REVENUE SERVICEINTERNAL REVENUE SERVICE

The power to levy taxes rests with:The power to levy taxes rests with: CONGRESS (makes the law) AND THE CONGRESS (makes the law) AND THE

PRESIDENT (signs the law)PRESIDENT (signs the law) When the government spends more than it When the government spends more than it

brings in with revenue it has a:brings in with revenue it has a: DEFICITDEFICIT

When the government brings in more than it When the government brings in more than it spends it has a:spends it has a: SURPLUSSURPLUS

Easiest tax form to fill out:Easiest tax form to fill out: 1040EZ1040EZ

STUDY, STUDY, STUDYSTUDY, STUDY, STUDY

Ok…. These were the easy Ok…. These were the easy ones! You have three chapters ones! You have three chapters of notes to review!of notes to review!

Don’t forget to study!Don’t forget to study!