1.03BM Taxes and Your Paystub

Last updated about 1 month ago

27 questions

Note from the author:

Distribute to Students
Student Activity Packet
MOVE: Your Tax Dollars In Action
FINE PRINT: Paystub
Learning Objectives
Students will be able to:
Read and understand a pay stub
Compare mandatory and discretionary government spending
Explain the difference between gross and net pay
Analyze the different categories of discretionary government spending
National Standards for Personal Financial Education
Earning Income
6b: Identify which level(s) of government typically receive(s) the tax revenue for income taxes, payroll taxes, property taxes, and sales taxes
6c: Describe the benefits they receive, or may receive in the future, from government-collected tax revenue
7c: Differentiate between gross, net, and taxable income

Instructions

Distribute to Students
Student Activity Packet
MOVE: Your Tax Dollars In Action
FINE PRINT: Paystub
Learning Objectives
Students will be able to:
Read and understand a pay stub
Compare mandatory and discretionary government spending
Explain the difference between gross and net pay
Analyze the different categories of discretionary government spending
National Standards for Personal Financial Education
Earning Income
6b: Identify which level(s) of government typically receive(s) the tax revenue for income taxes, payroll taxes, property taxes, and sales taxes
6c: Describe the benefits they receive, or may receive in the future, from government-collected tax revenue
7c: Differentiate between gross, net, and taxable income

Intro/Warm-Up

Learn It

DO IT! Activity: Move Your Tax Dollars in Action

Learn It!

Do It!

Exit Ticket

1.03BM Taxes and Your Paystub

Learning Objectives

Learning Objectives

1.03BM Taxes and Your Paystub

Learning Objectives

Learning Objectives

If you were in charge of how tax dollars are spent, what are some things in your community, state, or nationally that you would choose to pay for? (name at least 5 things)

VIDEO: If Paychecks Could Talk

9 min

Briefly describe the purpose of taxes.

What, if anything, surprises you about how the federal government spends taxpayer dollars?

If you were in charge of the federal budget, which categories would you prioritize more/less? Why?

What specifically would you spend more on in categories you increased?

What specifically would you cut from the categories you decreased?

The data in this game is from the most recent tax year. Do you think the ranking from highest to lowest changes much between years? Why or why not?

EDPUZZLE: How to Read a Pay Stub

5 min

What are Pre-Tax Deductions and Contributions?Contributions taken out of your paycheck AFTER taxes are calculated on your incomeContributions taken out of your paycheck BEFORE taxes are calculated on your income

Part I: Read The Fine Print

Analyze this sample pay stub and answer the questions that follow.

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?Military and EducationHealth and Veterans’ BenefitsHousing and TransportationSocial Security and Medicare

On a pay stub, the amount of money that is left after withholdings is known as…Gross payNet payAnnual earningsWages and tips

If you were in charge of how tax dollars are spent, what are some things in your community, state, or nationally that you would choose to pay for? (name at least 5 things)

VIDEO: If Paychecks Could Talk

9 min

Briefly describe the purpose of taxes.

Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

The federal income taxes that are withheld from your paycheck are used to pay for what?Mandatory spendingDiscretionary spendingUnemployment insuranceMedicare and Social Security

All of the following options are benefits we receive as a result of government spending EXCEPT:

What, if anything, surprises you about how the federal government spends taxpayer dollars?

If you were in charge of the federal budget, which categories would you prioritize more/less? Why?

What specifically would you spend more on in categories you increased?

What specifically would you cut from the categories you decreased?

The data in this game is from the most recent tax year. Do you think the ranking from highest to lowest changes much between years? Why or why not?

EDPUZZLE: How to Read a Pay Stub

5 min

What is the difference between gross pay and net pay?Net pay is before taxes and deductions are subtracted; Gross pay is your take-home payThere is no difference between gross pay and net payGross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

What are Pre-Tax Deductions and Contributions?Contributions taken out of your paycheck AFTER taxes are calculated on your incomeContributions taken out of your paycheck BEFORE taxes are calculated on your income

What are two examples of Employer Contributions?Health insurance and 401(k)401(k) and Roth IRAFederal and state taxesTraditional and Roth IRA

Part I: Read The Fine Print

Analyze this sample pay stub and answer the questions that follow.

How frequently does Hope receive a paycheck?DailyWeeklyTwice Per MonthMonthly

Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)?2389

What was the largest deduction for this pay period?FICA Medicare TaxFICA Social Security TaxFederal TaxNC State Tax

Hope's contribution to her RETIREMENT plan...is a post-tax contribution on which she pays federal income taxesis pre-tax and therefore not included in federal income taxesIs a contribution to her Social Securityis taxed at a rate of 15%

What was the TOTAL amount deducted from Hope's latest paycheck?$90.00$284.79$315.21$600.00

One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result?Her Federal taxHer healthHer dentalHer retirement

Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?$40.00$284.79$315.21$600.00

What important information is available on a pay stub?

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?Military and EducationHealth and Veterans’ BenefitsHousing and TransportationSocial Security and Medicare

On a pay stub, the amount of money that is left after withholdings is known as…Gross payNet payAnnual earningsWages and tips

Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

The federal income taxes that are withheld from your paycheck are used to pay for what?Mandatory spendingDiscretionary spendingUnemployment insuranceMedicare and Social Security

All of the following options are benefits we receive as a result of government spending EXCEPT:

What is the difference between gross pay and net pay?Net pay is before taxes and deductions are subtracted; Gross pay is your take-home payThere is no difference between gross pay and net payGross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

What are two examples of Employer Contributions?Health insurance and 401(k)401(k) and Roth IRAFederal and state taxesTraditional and Roth IRA

How frequently does Hope receive a paycheck?DailyWeeklyTwice Per MonthMonthly

Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)?2389

What was the largest deduction for this pay period?FICA Medicare TaxFICA Social Security TaxFederal TaxNC State Tax

Hope's contribution to her RETIREMENT plan...is a post-tax contribution on which she pays federal income taxesis pre-tax and therefore not included in federal income taxesIs a contribution to her Social Securityis taxed at a rate of 15%

What was the TOTAL amount deducted from Hope's latest paycheck?$90.00$284.79$315.21$600.00

One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result?Her Federal taxHer healthHer dentalHer retirement

Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?$40.00$284.79$315.21$600.00

What important information is available on a pay stub?

What are Pre-Tax Deductions and Contributions?
Contributions taken out of your paycheck AFTER taxes are calculated on your income
Contributions taken out of your paycheck BEFORE taxes are calculated on your income

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
Military and Education
Health and Veterans’ Benefits
Housing and Transportation
Social Security and Medicare

On a pay stub, the amount of money that is left after withholdings is known as…
Gross pay
Net pay
Annual earnings
Wages and tips

The federal income taxes that are withheld from your paycheck are used to pay for what?
Mandatory spending
Discretionary spending
Unemployment insurance
Medicare and Social Security

What is the difference between gross pay and net pay?
Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay
There is no difference between gross pay and net pay
Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

What are Pre-Tax Deductions and Contributions?
Contributions taken out of your paycheck AFTER taxes are calculated on your income
Contributions taken out of your paycheck BEFORE taxes are calculated on your income

What are two examples of Employer Contributions?
Health insurance and 401(k)
401(k) and Roth IRA
Federal and state taxes
Traditional and Roth IRA

How frequently does Hope receive a paycheck?
Daily
Weekly
Twice Per Month
Monthly

Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)?
2
3
8
9

What was the largest deduction for this pay period?
FICA Medicare Tax
FICA Social Security Tax
Federal Tax
NC State Tax

Hope's contribution to her RETIREMENT plan...
is a post-tax contribution on which she pays federal income taxes
is pre-tax and therefore not included in federal income taxes
Is a contribution to her Social Security
is taxed at a rate of 15%

What was the TOTAL amount deducted from Hope's latest paycheck?
$90.00
$284.79
$315.21
$600.00

One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result?
Her Federal tax
Her health
Her dental
Her retirement

Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?
$40.00
$284.79
$315.21
$600.00

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
Military and Education
Health and Veterans’ Benefits
Housing and Transportation
Social Security and Medicare

On a pay stub, the amount of money that is left after withholdings is known as…
Gross pay
Net pay
Annual earnings
Wages and tips

The federal income taxes that are withheld from your paycheck are used to pay for what?
Mandatory spending
Discretionary spending
Unemployment insurance
Medicare and Social Security

What is the difference between gross pay and net pay?
Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay
There is no difference between gross pay and net pay
Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

What are two examples of Employer Contributions?
Health insurance and 401(k)
401(k) and Roth IRA
Federal and state taxes
Traditional and Roth IRA

How frequently does Hope receive a paycheck?
Daily
Weekly
Twice Per Month
Monthly

Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)?
2
3
8
9

What was the largest deduction for this pay period?
FICA Medicare Tax
FICA Social Security Tax
Federal Tax
NC State Tax

Hope's contribution to her RETIREMENT plan...
is a post-tax contribution on which she pays federal income taxes
is pre-tax and therefore not included in federal income taxes
Is a contribution to her Social Security
is taxed at a rate of 15%

What was the TOTAL amount deducted from Hope's latest paycheck?
$90.00
$284.79
$315.21
$600.00

One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result?
Her Federal tax
Her health
Her dental
Her retirement

Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?
$40.00
$284.79
$315.21
$600.00