CFL - UNIT 1 - STUDY GUIDE
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+
Who fills out the W-2 form? - ANSWER✔✔Employees and they return it back to
their employer.
Why should someone complete a W-4 form? - ANSWER✔✔You should complete
this form for your employer to determine how much should be withheld from your
paycheck for federal income taxes and sent to the IRS.
When do you start paying income taxes? - ANSWER✔✔When you make over
13,850 (standard deduction) or do not choose to be exempt from taxes.
What is FICA? - ANSWER✔✔The Federal Insurance Contributions Act is a
United States federal payroll tax payable by both employees and employers to fund
Social Security and Medicare.
What is Medicare? - ANSWER✔✔Medicare is the federal health insurance for
anyone age 65 and older, and some people under 65 with certain disabilities or
conditions.
What is Social Security tax? - ANSWER✔✔Social Security tax is a FICA tax on
wages which provides most of the funding for Social Security. The tax is 12.4% of
an employee's wages, but the tax cost is split between the employee and employer
with each paying 6.2%.
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+
Who fills out the W-2 form? - ANSWER✔✔Employees and they return it back to
their employer.
Why should someone complete a W-4 form? - ANSWER✔✔You should complete
this form for your employer to determine how much should be withheld from your
paycheck for federal income taxes and sent to the IRS.
When do you start paying income taxes? - ANSWER✔✔When you make over
13,850 (standard deduction) or do not choose to be exempt from taxes.
What is FICA? - ANSWER✔✔The Federal Insurance Contributions Act is a
United States federal payroll tax payable by both employees and employers to fund
Social Security and Medicare.
What is Medicare? - ANSWER✔✔Medicare is the federal health insurance for
anyone age 65 and older, and some people under 65 with certain disabilities or
conditions.
What is Social Security tax? - ANSWER✔✔Social Security tax is a FICA tax on
wages which provides most of the funding for Social Security. The tax is 12.4% of
an employee's wages, but the tax cost is split between the employee and employer
with each paying 6.2%.
