MONEY

MANAGEMENT

UNIT 2 – Test Review

Understanding Paychecks, Benefits, Employee Taxes, and Tax Returns

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

CHAPTER FIVE

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

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

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

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

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!