JeopardyDon’t Take All My Money

Q $100

Q $200

Q $300

Q $400

Q $500

Q $100 Q $100Q $100 Q $100

Q $200 Q $200 Q $200 Q $200

Q $300 Q $300 Q $300 Q $300

Q $400 Q $400 Q $400 Q $400

Q $500 Q $500 Q $500 Q $500

Final Jeopardy

$100 Question from Don’tFind 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 allowanceGeneral Check Information

Dept Employee Check # Week Ending

Gross Pay Net Pay

23 Chapman, D. 432 3/5 $640.00Tax and Personal Deductions

FIT FICA Medicare State Local Medical Union Dues Others

10.00

$100 Answer from Don’t

General Check Information

Dept Employee Check # Week Ending

Gross Pay Net Pay

23 Chapman, D. 432 3/5 $640.00 $485.64Tax and Personal Deductions

FIT FICA Medicare State Local Medical Union Dues Others

73.00 39.68 9.28 12.80 9.60 10.00 -- --

$200 Question from Don’t

True or False. Explain your reasoning.

Medicare taxes are paid on all earnings.

$200 Answer from Don’t

TRUE

Social Security is the one that taxes only up to $90,000 of income.

$300 Question from Don’tFind 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?

$300 Answer from Don’t

$4300 * 0.30 = $1290$1290/52 = $24.81

$400 Question from Don’t

True or False. Explain your reasoning.

It is not possible to have zero withholding allowances when calculating income tax.

$400 Answer from Don’t

False – You can claim zero allowances.Look at the tables on pages 788-791. There isa column for zero allowances.

$500 Question from Don’tUse the tables on pages 788-791 when needed.Find the amount withheld for Federal Income

Tax.

J. WilliamsMarried

Earns $40,000 annually2 Allowances

$500 Answer from Don’t

Have to convert to weekly pay first:$40,000/52 = $769.23

FIT withheld: $59.00

$100 Question from TakeStacey Peralta was hired on January 2 for thesupervisory position. She earns a salary of $98,000 and is paid monthly. How much iswithheld in December for Social Security andMedicare? How much is withheld total?

$100 Answer from Take 1st – How much did she earn in December:$98,000/12 = $8166.67

2nd – Find Social Security: Is her annualamount over $90,000? Yes. $8,000 over.$8166.67-$8000 = $166.67$166.67 * 0.062 = $10.33

3rd – Find Medicare: $8166.67 * 0.0145 = $118.42

4th – Total withheld: $10.33 + $118.42 = $128.75

$200 Question from TakeFind the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below.

State Tax

Taxable Wages Tax Rate

First $1,000 1.5%

Next $2,000 3.0%

Next $2,000 4.5%

Over $5,000 5.0%

Annual salary: $95,000Married, one dependentPaid weekly

$200 Answer from TakeFrom 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

$300 Question from Take

Describe a scenarios when a young, healthyperson would need health insurance.

$300 Answer from Take

Answers vary

$400 Question from TakeUse the Personal Exemptions table on page 119if 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?

$400 Answer from Take

$49,830 - $2,000 = $47,830

$47,830 * 0.05 = $2,391.50

$500 Question from TakeFind the Social Security and Medicare taxeswithheld per pay period:

R. GreenblatAnnual Gross Pay: $32,231Pay Periods per year: 26

$500 Answer from Take

$32,231/26 = $1239.65

Social Security: $1239.65 * 0.062 = $80.58Medicare: $1239.65 * 0.0145 = $17.98

$100 Question from AllFind 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 taxableincome. What amount is withheld from each ofhis monthly paychecks for state income tax?

Personal Exemptions

Single $1,500

Married $3,000

Each Dependent

$1,500

$100 Answer from AllWith 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

$200 Question from All

True or False. Explain your reasoning.

Federal Income Tax is handled by the FederalBureau of Investigation.

$200 Answer from All

False

FIT is handled by the IRS(Internal Revenue Service)

$300 Question from All

Name a state that doesn’t have state income tax.

$300 Answer from All

Alaska, Florida, Nevada, South Dakota,Texas, Washington and Wyoming.

$400 Question from AllUse the tables on pages 788-791 when needed.Find the amount withheld for Federal Income

Tax.

S. SheeksSingle

Weekly Gross Income: $330.00Claims 3 Allowances

$400 Answer from All

$10

$500 Question from AllFind 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 hermonthly paychecks for state income tax?

Personal Exemptions

Single $1,500

Married $3,000

Each Dependent

$1,500

$500 Answer from All

$32,000 - $1,500 = $30,500

$30,500 * 0.02 = $610

$610/12 = $50.83

$100 Question from MyFind the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below.

State Tax

Taxable Wages Tax Rate

First $1,000 1.5%

Next $2,000 3.0%

Next $2,000 4.5%

Over $5,000 5.0%

Annual salary: $24,400SinglePaid semimonthly

$100 Answer from MyFrom 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

$200 Question from MyUse the tables on pages 788-791 to find theamount withheld.

Kristen Martinez is married, earns $252.75 a week, and claims 1 allowance. What amountis withheld weekly for federal income tax?

$200 Answer from My

$4

$300 Question from My

List one reason why most states charge astate income tax?

$300 Answer from My

States charge taxes to pay for police andfire protection, public schools, roads, libraries, inspection of foods, etc.

$400 Question from MyPersonal Exemptions

Single $2,000

Married $4,000

Each Dependent $2,000

State Tax

Annual Gross Pay Tax Rate

First $3,500 3.0%

Next $3,500 4.5%

Over $7,000 7.0%

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?

$400 Answer from MyExemptions: $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

$500 Question from My

Find the deduction per pay period.

Annual cost of insurance: $6,8000Employer pays 75%24 pay periods

$500 Answer from My

$6,800 * 0.25 = $1,700

$1,700/24 = $70.83

$100 Question from MoneyCatherine 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?

$100 Answer from Money

$2,650 * 0.3 = $795

$795/52 = $15.29

$200 Question from Money

What is one reason why Social Security is collected?

$200 Answer from Money

Funds collected finance the retirement, disability, and life insurance of the federal government’s Social Security program.

$300 Question from MoneyLynn 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

Dept Employee Check # Week Ending

Gross Pay Net Pay

PAYR Lynn G. 235 12/11Tax and Personal Deductions

FIT FICA Medicare State Local Medical Union Dues Others

0.00

$300 Answer from Money

General Check Information

Dept Employee Check # Week Ending

Gross Pay Net Pay

PAYR Lynn G. 235 12/11 720.00 $560.52Tax and Personal Deductions

FIT FICA Medicare State Local Medical Union Dues Others

20.00 44.64 10.44 21.60 10.80 35.00 17.00 0.00

$400 Question from MoneyFind the state tax withheld per pay period using the exemptions table on page 123 and the graduated tax rates below.

State Tax

Taxable Wages Tax Rate

First $1,000 1.5%

Next $2,000 3.0%

Next $2,000 4.5%

Over $5,000 5.0%

Annual salary: $30,000Married, 1 dependentPaid weekly

$400 Answer from MoneyFrom 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

$500 Question from Money

Find the Social Security and Medicare taxes withheld per pay period:

A. TomineAnnual Gross Salary: $20,235Pay Periods per year: 24

$500 Answer from Money

Social Security: $20,235 * 0.062 = $1,254.571254.57/24 = $52.27

Medicare: $20,235 * 0.0145 = $293.41293.41/24 = $12.23

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?

Final Jeopardy Answer

5 months out of the year