Lesson 30: Payroll Tax Withholding
Duration of Days: 2
Lesson Objective
Demonstrate the process for determining federal income tax withholdings and the process for calculating social security and Medicare taxes.
What factors influence the amount of federal income tax that is withheld from an employee's paycheck?
Why is it important for employers to accurately withhold federal income tax, Social Security, and Medicare taxes from employees' paychecks?
payroll taxes
withholding allowance
payroll deduction
social security tax
Medicare tax
accumulated earnings
tax base
qualified retirement plan
401(k)
individual retirement account (IRA)
Roth individual retirement account (Roth IRA)
CTE Business & Finance Technology
F. Special Applications: Apply appropriate accounting principles to payroll.
22. Prepare and maintain payroll records.
HS.CTE.2C - 2C. Apply a solution using evidence and reasoning
POG:
I am a LEARNER: Master fundamental skills in core subject areas
I am a THINKER: Critical thinking, independent thinking
The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs
Description: To understand the process of calculating federal income tax withholdings and Social Security/Medicare taxes for employees.
Purpose: equip students with the knowledge and skills necessary to accurately determine federal income tax withholdings and calculate Social Security and Medicare taxes.
DOK Level 1: Recall
What is the current percentage rate for Social Security and Medicare taxes, and what income levels do they apply to?
DOK Level 2: Skill/Concept
Using a provided W-4 form and tax table, calculate the amount of federal income tax that should be withheld for an employee with a specific salary. How do the allowances claimed on the W-4 affect the withholding amount?
DOK Level 3: Strategic Thinking
Online working papers: a scenario where an employee earns a specific salary or hourly wage, with various pre-tax deductions, determines the correct amount of federal income tax to be withheld, as well as the Social Security and Medicare taxes. Explain each step in your calculations, and justify why these amounts are accurate based on the current tax laws and rate
Payroll taxes are tracked by all by business that have pay employees
Not tracking and paying payroll taxes, such as Social Security and Medicare is a requirement of all businesses
Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students
Guided Notes
Worksheet
Vocabulary assignment
Work together/on own problems, mastery or source document problems
moodle quiz, quizziz or nearpod assessment
Century 21, Accounting, General Journal, 11th edition, online/paper edition
Online working papers (Mindtap)
Microsoft Excel software
Online instructional tools