Intro to Earning
Overview
Understanding your paycheck is an important step towards managing your finances. Why is your paycheck so important? Because your paycheck is…
What is a graduated tax?
A tax you pay after completing high school
A tax that goes down the more you earn
A tax that only people earning more than $100,000 pay
A tax that goes up the more you earn
What is the purpose of Social Security?
The Social Security system has been replaced by 401k plans
A government program that provides retirement and disability benefits
It’s a pension fund for government employees
To be the primary retirement plan for U.S. Citizens
What’s the Medicare tax rate for an employee?
3.45%
1.45%
6.2%
Employees are exempt from the Medicare tax
What is the Social Security tax rate for an employee?
1.45%
2.45%
Most people don’t pay Social Security tax
6.2%