Check your understanding of taxes by answering the following questions.
1.
Employees complete Form W-4 to estimate the amount of tax that should be deducted from their paychecks.True False
2.
The tax dollars that you pay to your local government funds military programs for the United States.True False
3.
Net pay is the total amount of income you receive during a pay period before taxes.True False
4.
Each state imposes the same amount of income tax on its citizens and must have all expenses approved through the federal government.True False
5.
The Medicare tax finances the hospital insurance portion of Social Security.True False
