Deductions Webquest

DIRECTIONS: Use reputable online sources to identify the following deductions on your
paycheck. Explain what each one is in a few complete sentences. Copy & paste the web address
from which you obtained information as well. Wikipedia is not acceptable!

Federal Withholding Tax

Definition:Salaries, wages, or any other pay for personal services (referred to collectively as
wages) paid to nonresident alien (NRA) employees are subject to graduated withholding in
the same way as for U.S. citizens and residents if the wages are effectively connected with
the conduct of a U.S. trade or business..
Source:http://www.irs.gov/Individuals/International-Taxpayers/Federal-Income-Tax-Withholding

State Withholding Tax

Definition:
Source:

FICA - Social Security

Definitione Social Security program's benefits include retirement income, disability income,
Medicare and Medicaid, and death and survivorship benefits. Based on the year someone
was born, retirement benefits may begin as early as age 62 and as late as age 67.
:Source:http://www.investopedia.com/terms/s/socialsecurity.asp

FICA - Medicare
Definition:medicare is a U.S. federal health program for those who are of the age 65 or up but
can apply for those who are in financial hardships when it comes to medical needs
Source:http:http://www.investopedia.com/terms/m/medicare.asp

Medical Insurance
Definition:a type of of insurance coverage the pays for medical and surgical expenses that
are incurred by the insured.Health insurance can either reimburse the insured for expenses
incurred from illness or injury or pay the care provider directly.
Source:http://www.investopedia.com/terms/h/healthinsurance.asp

Retirement / 401K
DefinitionA qualified plan established by employers to which eligible employees may make
salary deferral (salary reduction) contributions on a post-tax and/or pretax basis.
Source:http://www.investopedia.com/terms/1/401kplan.asp