About This Lesson
Students will explain items commonly found on paychecks including payroll taxes and other deductions withheld from wages. Students will complete IRS Form W-4 (Employee's Withholding Allowance Certificate) to understand effect on take-home pay of changing the allowances claimed on the form. Students will define the role of the Internal Revenue Service and explore who has to file a tax return by being able to identify tax-free earnings limits. Lastly, students will explore what it means to have a progressive tax system, and calculate an earner's effective tax rate using IRS tax tables. FinLit
