Your Paycheck and Paying Taxes W4 Form Long

Your Paycheck and Paying Taxes

W-4 Form…. . Long, Long Ago… �When you first started work, you had to fill out LOTS of papers…. . a W-4 was one of them. �This tells your employer how much tax to deduct from each paycheck.

Most of you probably claimed… �Either one…or ZERO �If you claimed EXEMPT… �No Federal taxes have been taken out and…. …YOU MAY OWE $$$ in April!

Let’s look at a paycheck…. �Your paycheck should show… �GROSS PAY �HOURLY WAGE �AND… �OTHER DEDUCTIONS �FOR WHAT? ? ?

GROSS PAY �The amount of pay you receive hourly times the number of hours worked. �$10. 00 an hour times 22 hours equals…. �$220. 00…that’s your amount BEFORE taxes are taken out.

Net Pay �Gross pay minus deductions…. �Such as… �Federal Income Tax �State Income Tax �FICA (Social Security) �State Disability �Medicare Tax

Where Do My Taxes Go? Tax $ 6% 14% Social Security 39% Medicare/Health Defense 16% Other National Debt 25%

How Taxes are Paid �System of Voluntary Compliance �Means…. you pay as you go… �Otherwise…. �You may have to pay LOTS in April

W-2 Form �Your name and Your employer’s name �Shows Wages, Tips and other Compensation �Federal Income Tax Withheld �Amounts are for the entire year

What If I Don’t Pay? �If you get a job where you are paid under the table…. �You are not covered by Workmen’s Comp Insurance �You have not paid into State or Federal Taxes �You have not paid into Social Security

If you are caught…. You have to pay Taxes… plus penalties!!! If you get hurt on the job…. You are not covered by Workman’s Comp Insurance…. So…you have to pay for your own medical It’s not worth it to work bills…. $$$ table! under the

HOW DO I File Taxes? ? ? �Use your W-2 form to fill out your income tax form �Form 1040 -A or 1040 EZ. �You also need this information for FAFSA (Free Application for Federal Student Aid)

When Are Taxes Due? TH 15 APRIL OF EVERY WHEN DO I GET MY MONEY? ? ? YEAR! Your check comes 4 to 6 weeks after you file your tax form…. It comes in about 10 days to two weeks if you file it electronically and have it automatically put into your checking account.

Some Words to Remember… �Tax Liability…. Amount of tax you owe �Dependent…a person who is supported by someone else, either by parents or a spouse. Most of you are dependents! �If you have a dependent…you file “head of household” instead of “single. ” �W-2 �W-4 � 1040 �Voluntary Compliance �FICA �Deduction