| Question |
Answer |
| Tax | A required payment to the government. |
| FICA | Federal Insurance Contributions Act. |
| Medicare | A social insurance program that extends health coverage to almost all Americans aged 65 and over. |
| Social Security | A federal retirement program in which the working generation contributes to support retired workers, survivors, and the disabled. |
| Net monthly income (NMI) | The amount of pay left after all deductions; taxes, FICA, and medicare are taken out. |
| Gross monthly income (GMI) | the amount of pay per month prior to any deductions being taken out. |
| Gross Annual Income (GAI) | The total amount of pay for a year prior to any deductions. |
| Social Security Number | A number assigned to individuals to keep track of you and your earnings throughout a lifetime. |
| What are the three main types of taxes? | Income tax, sales tax, and property tax. |
| The purpose of taxes are | improve roads, support government, and pay retirement benefits. |
| Net annual income (NAI) | Amount of income remaining to spend in a year after all deductions have been made. |
Ch.18 LTI-MA 509
