question 5 of 12\nwhat is a form w - 4, and how does it affect payroll deductions?\ntype your answer in the…

question 5 of 12\nwhat is a form w - 4, and how does it affect payroll deductions?\ntype your answer in the box below.\n\nquestion 6 of 12\ndescribe how fica taxes are calculated and what they are used for.\ntype your answer in the box below.

question 5 of 12\nwhat is a form w - 4, and how does it affect payroll deductions?\ntype your answer in the box below.\n\nquestion 6 of 12\ndescribe how fica taxes are calculated and what they are used for.\ntype your answer in the box below.

Answer

Question 5

Brief Explanations:

A Form W - 4 is a tax - related form employees in the US fill out for employers. It provides information about the employee's filing status, number of allowances claimed, etc. This information is used by employers to determine the amount of federal income tax to withhold from an employee's paycheck. More allowances claimed generally mean less tax is withheld.

Answer:

A Form W - 4 is an Employee's Withholding Certificate. Employers use the information on it to calculate the amount of federal income tax to withhold from an employee's paycheck. The more allowances an employee claims on the form, the less federal income tax will typically be deducted from their pay.

Question 6

Brief Explanations:

FICA (Federal Insurance Contributions Act) taxes consist of Social Security and Medicare taxes. Social Security tax is calculated as a percentage (6.2% in 2024) of an employee's wages up to a certain wage base ($168,600 in 2024). Medicare tax is calculated as 1.45% of all employee wages with no wage base limit for regular earnings. Self - employed individuals pay both the employee and employer portions of these taxes. Social Security taxes fund retirement, survivor, and disability benefits, while Medicare taxes fund healthcare for the elderly and certain disabled individuals.

Answer:

FICA taxes are calculated as 6.2% of an employee's wages (up to a wage base) for Social Security and 1.45% of all wages for Medicare. Self - employed people pay both the employee and employer portions. Social Security taxes fund retirement, survivor, and disability benefits, and Medicare taxes fund healthcare for the elderly and some disabled individuals.