Teacher instructions: 1. Print the lesson,

1. Teacher instructions: 1. Print the lesson, 2. Display slide 2 with Procedure step 2 in the lesson. 3. Display slides 3 and 4 with Procedure step 3. 4. Display slide 5 with Procedure step 4. 5. Display slides 6 and 7 with Procedure step 5. 6. Display slide 8 with Procedure step 6. 7. Display slide 9 with Procedure step 9. 8. Display slide 10 with Procedure step 11. 9. Display slide 11 with Procedure step 13. 10. Display slide 12 with Procedure step 14. 11. Display slides 13, 14 and 15 with Procedure step 17. Use the “felt pen” tool to draw a line from the goods and services that are included in those offered by federal, state and local government. 12. Display slides 16 through 25 with Procedure step 18. Know Your Dough, Lesson 2: "W" is for Wages, W-4 and W-2.

2. Income - the payment people receive for providing resources in the market Wages - the income for providing human resources (labor)

7. Taxes - government fees on business and individual income, activities, products or property Gross pay - the amount people earn per pay period before any deductions or taxes are paid Net pay - the amount people receive after taxes and other deductions are taken out

8. Income tax - a tax on the amount of income people earn How much federal income tax was withheld from John's check? Q A $25.20 What percentage of his income did John pay in federal income tax? Q $25.20/$168.00 = .15 = 15% A

9. Form W-4 is a form that must be completed by employees before they start a job.

10. FICA is a tax or required contribution resulting from the Federal Income Contributions Act.

11. Form W-2 is a form employers must provide to employees at the end of each year to report annual income and withholding for the employee's tax return.

13. What are some goods and services that the federal government provides for citizens? state parks police protection federal government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

14. What are some goods and services that the state government provides for citizens? state parks police protection state government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

15. What are some goods and services that the local government provides for citizens? state parks police protection local government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

16. What are taxes? Taxes are government fees on business and individual income, activities, products or property. People are required to pay taxes.

17. What is FICA? FICA is a tax or required contribution resulting from the Federal Insurance Contributions Act.

18. What is income? Income is payment people receive for providing resources in the market.

19. What are wages? Wages are a form of income people receive for work they do.

20. What is net pay? Net pay is take-home pay; it's the amount received after taxes and deductions have been taken out.

21. What does FICA fund? FICA funds Social Security and Medicare.

22. What is gross pay? Gross pay is the amount people earn in a pay period before any deductions or taxes are taken out.

23. What is a W-4 form and for what is it used? A W-4 form is a form that must be completed by employees before they start a job. It is used by employers to determine the amount of income tax to withhold.

24. What is a W-2 form? A W-2 form is a form employers must provide to employees shortly after year-end to report annual income and withholding for the employee's tax return.

25. Who pays FICA? Both employees and employers pay FICA.