1. Chapter 5 5.1 Work Related Forms and Laws Ms. Dinnella

2. When getting a job:  You must fill out the following forms: Form W-4 For income tax purposes You will receive a W-2 in the month of January

3. Form W-4  Asks for your name, address, social security number, marital status, and number of exemptions-you are claiming for income tax purposes  Determine the amount your employer will withhold from your paycheck for income taxes  Employer sends money to government

4. Allowances  Reductions in the amount of tax withheld from your paycheck  *the more allowances you claim, the less tax you will have withheld  Even if you have less taken out when filling out your W-4; this means you will get more taken out when you pay your taxes in April

5. Exempt status  if you qualify you can claim exempt status  Available only if people who will not earn enough in the year to owe any federal income tax (this changes annually)  2010 Chart example

6. Form W-2  Summary of the income you earned during the year and all amounts the employer withheld for taxes Federal State Local income taxes Social security taxes  Compare your W-2 with your pay stubs that you get Employer will send you a copy around the time you are filing your tax returns

7. Assessment  Quiz next class on section 5.1