3.3 earning & spending

Part 1:

•Get a Job

•Get Paid

“Employee’s Withholding Allowance Certificate”

Determines the % of pay to be taken-out of your check for taxes.

The more people who DEPEND on YOU for support, the less money will be taken from your check.

Exempt = NO TAXES are taken out

“Employment Eligibility Verification Form”

Used to verify citizenship, and

eligibility to work in the U.S.A.

You might not see it!

Requires: Drivers License, SS Card,

Passport, or Birth Certificate

. . .Where is my money going? Federal & State Taxes

FICA – (Federal Insurance Contribution Act)◦ Social Security & Medicare

These are MANDATORY Deductions!

. . .Where is my money going? Other Withholdings

◦ Insurance, Retirement, Flex-Plans

GROSS = Before

NET = After

These are OPTIONAL Deductions!

Part 2:

•Paying Taxes

Sales Tax

Property Tax

Income Tax

Flat/Fair Tax???

Protection

Education

Mail

Roads

Government Programs (welfare, social security, medicare, medicaid)

“Wage & Tax Statement”

Tells you:

◦ Amount of money you made

◦ Amount of taxes you already paid

Required for filing your taxes!!!

“Tax form for single or joint filers with no dependents”

No one else depends on you for

support.

Your taxable income was less than

$100,000

Must use with a Tax Table!

[(Income – lower limit) x %] + tax

Income is over

But not over The tax is PlusOf the

amount over

$0.00 8,350.00 0.00 10% 0.00

8,350.00 33,950.00 835.00 15% 8,350.00

33,950.00 82,250.00 4,675.00 25% 33,950.00

82,250.00 171,550.00 16,750.00 28% 82,250.00

171,550.00 372,950.00 41,754.00 33% 171,550.00

372,950.00 108,216.00 35% 372,950.00