Investigating payroll tax and federal income tax withholding
Students analyze W-4 forms and pay stubs in order to better understand payroll taxes and federal income tax withholding.
Big idea
Payroll and income taxes are withheld from employees’ pay by their employers, and Form W-4 is used to determine how much income tax is withheld.
Essential questions
- How can you calculate how much money will be withheld for taxes from your paycheck?
- What’s the purpose of the Form W-4?
Objectives
- Identify what types of taxes are deducted from a paycheck
- Complete a Form W-4 and claim federal income tax withholding allowances
What students will do
- Read a handout on taxes.
- Apply their understanding to interpreting sample Form W-4s and pay stubs.
Download activity
Teacher guide
cfpb_building_block_activities_payroll-tax-federal-income-tax-withholding_guide.pdf
Student materials
cfpb_building_block_activities_payroll-tax-federal-income-tax-withholding_worksheet.pdf
cfpb_building_block_activities_understanding-paycheck-deductions_handout.pdf
Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.