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8. Isaac receives his salary via direct deposit. At the end of each pay period, he receives a paycheck stub. Isaac throws them away, because he already received his paycheck and he feels he does not need to keep the paycheck stub. What does it tell him? What should Isaac do with his paycheck stub? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 9. Salman lived in a state with no state income tax. He subsequently moved to a state with income tax, but kept the same job. What change can Salman expect to his paycheck? _ ____________________________________________________________________ _ ____________________________________________________________________ 10. Typically, healthcare insurance premiums are _____ a. shared between employers and employees c. paid entirely by the employees b. paid entirely by the employer d. paid entirely by the government 11. U.S. income tax is called “progressive” because: a. it is an improvement over previous forms of taxes b. the tax increases over time c. taxes are progressively higher as income increases d. it is the most modern tax system in the world 12. Which of the following is the IRS form used by the employee to tell an employer how many allowances the employee is claiming? a. Form 1040 c. Form W-2 b. Form 1099 d. Form W-4 13. Aaron lives in Alaska. This year he earned $32,930 working at a local company as a machinist, $2525 as a weekend freelance fishing guide, and $750 in tips from happy tourists who caught their limit. His small mail order fly-tie business brought in $623. Each of the following is true EXCEPT a. His gross income is $36,828 b. The money he earned in gratuities (tips) is not taxable c. He will pay no state income taxes d. His fly-tie and freelance earnings are included in his gross income PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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