9. The withholding section is where Ben Franklin's tax prophecy comes true. Here you'll find the amount withheld from Kelly's check in two columns: "current," or withheld from this check, and "YTD," or her withholdings since the first of the year. Here's an explanation of the withholdings:

Question

•Federal income tax is withheld by the U.S. Internal Revenue Service. The IRS is responsible for collecting federal income tax. The withholding is a kind of down payment on your yearly income tax.

•Similar to federal income tax, state income tax is withheld by your state to cover your annual state income tax.

• Medicare is a federal program that provides health insurance to older people and people with disabilities. Every employee pays a Medicare tax in each paycheck to help fund the program.

•Social Security is a federal program that provides income to older people, people with disabilities, and some people who've lost a spouse or parent. Every employee pays a Social Security tax in each paycheck.

The bulleted list after paragraph 9 describes the different types of withholdings shown on pay stubs. Place each phrase under the correct heading in the table. Be sure to use all answer choices. (Note: The boxes in the table will expand as you drag and drop the answer choices.)

Federal Income Tax

State Income Tax

Medicare Tax

Social Security Tax

used to help provide income to older people, people with disabilities, and some people who have lost a spouse or parent

withheld by the state where you live

withheld by the U.S. Internal Revenue Service

used to help provide health insurance for older people and people with disabilities

Answer 1

Federal Income Tax: withheld by the U.S. Internal Revenue Service

State Income Tax: withheld by the state where you live

Medicare Tax: used to help provide health insurance for older people and people with disabilities

Social Security Tax: used to help provide income to older people, people with disabilities, and some people who have lost a spouse or parent

Answer 2

Luis is planning to buy a used car. Which part of his pay stub would BEST help him figure out how much of a car payment he can afford?

A gross pay

B hourly rate

c hours worked

D net pay

Answer 3

D net pay

Answer 4

Suzanne received a $50 income tax refund for 2021. She started a new job at the beginning of 2022. In her new job, she worked the same number of hours per week, had the same hourly rate, and still got paid every two weeks. Suzanne hoped to get a tax refund for 2022. She had been working in her new job for just a few months. How could Suzanne have used her pay stubs to find out if she would likely receive a tax refund for 2022?

A Compare pay stubs from her old job and new job. Make sure the current federal and state tax withholdings for her new job are at least as much as they were for her old job.

B Compare pay stubs from her old job and new job. Make sure the YTD federal and state tax withholdings for her new job are less than they were for her old job.

c Compare pay stubs from her old job and new job. Make sure the current federal and state tax withholdings for her new job are less than they were for her old job.

D Compare pay stubs from her old job and new job. Make sure the YTD federal and state tax withholdings for her new job are at least as much as they were for her old job.

Answer 5

D Compare pay stubs from her old job and new job. Make sure the YTD federal and state tax withholdings for her new job are at least as much as they were for her old job.