13 Questions
What is gross pay?
The amount earned per pay period before any deductions or taxes
What is a W-4 form used for?
To determine the percentage of income to deduct for federal income taxes
What is net pay?
The amount received after taxes and other deductions are taken out
What is income tax?
A tax on the amount of income people earn
What is the purpose of the W-4 form?
To determine the amount of income tax to be deducted from each employee's paycheck
What is the total FICA tax percentage for 2010?
15.3%
Who is responsible for the entire FICA percentage?
Self-employed individuals
When are taxpayers required to submit their tax reports for the previous year?
April 15 of the following year
What is the purpose of the 1040 EZ form?
To submit a simple tax return
What is the principle behind tax collection in the United States?
Pay as you earn income
What is the purpose of the tax refund from the federal government?
To refund overpaid income tax
What does FICA stand for?
Federal Insurance Contributions Act
What is the employee's share of FICA for 2010?
7.65%
Test your knowledge of tax deductions and withholdings with this quiz. Learn about the various taxes that are taken from paychecks and understand their purpose in funding government goods and services.
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