Everfi Employment & Taxes Basic Banking questions and answers

W-4 A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes. gig economy a flexible market that allows you to work short-term independent jobs net pay take home pay; the amount of a paycheck after all taxes and deductions have been taken out of your paycheck taxes money paid to the Federal, State, and Local governments for schools, parks, roads, emergency services, etc. withholding (tax withheld) tax payments taken out of an employee's pay before he or she receives it filing status describes your tax-filing group which is based on your marital status (single, married filing separately, married filing jointly) personal allowances Items or exemptions you can claim on your W-4 form that reduce the amount of tax taken out of your paycheck gross pay the total amount of an employee's earnings before deductions are taken out FICA (Federal Insurance Contributions Act) money that goes to Social Security and Medicare programs Deductions money taken out of a paycheck to pay for employee benefits like insurance or retirement plans W-2 a form that tells you how much you've made and how much you've paid in taxes in the last year; you will use this to fill out your tax return standard deduction an amount of money set by the IRS that is not taxed taxable income income on which tax must be paid; total income minus exemptions and deductions 1040 A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year