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DO NOW:

DO NOW:. Can you explain why a worker earns $1000 but receives a paycheck for less than $1000? What happens to the amount earned but not received by the employee?. IRS Tax Tutorials. Go to the IRS website and complete the online tax tutorial:

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DO NOW:

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  1. DO NOW: Can you explain why a worker earns $1000 but receives a paycheck for less than $1000? What happens to the amount earned but not received by the employee?

  2. IRS Tax Tutorials Go to the IRS website and complete the online tax tutorial: http://www.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod01/tt_mod01_01.jsp ADDITIONAL TAX TUTORIALS FROM THE IRS: http://www.irs.gov/app/understandingTaxes/student/tax_tutorials.jsp

  3. Completing IRS Form W-4 The employer withholds payroll taxes from employee pay. Employers do not keep this money. Instead, it is sent to the appropriate authorities. So, how does the employer know how much income tax to withhold? (Why does it vary from employee to employee? http://www.irs.gov/app/understandingTaxes/hows/mod01/sim_mod01_01.jsp

  4. IRS: Tax calculator Based on the income you established that you will earn in your “new job” last week, determine how much you will pay in income taxes. http://www.irs.gov/individuals/page/0,,id=14806,00.html

  5. Scenario 1: Single person Rent: $1,000/month Food: $250/month Transportation (car payment, gas, insurance): $350/month Utilities (gas, heat, electricity): $200/month Phone, Internet: $100/month Other: $___/month Calculate how much you will need to earn per year to cover all of your expenses after taxes. How will you do?

  6. SUMMARY What is the most fair way to collect taxes? Why might a national sales tax be more equitable than a national income tax? Explain. Write your answers on a sheet of paper and submit for a 5 point classwork/homework grade prior to leaving class today.

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