Assignment - Taxes and Credit

Assignment Assignment: Taxes and Credit Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions In Section 5, you learned about taxes and credit. Now, you'll apply what you learned. TIP: If you want, you can practice filling out the 1040 tax form, but don't turn the tax form in to your instructor. The information on that form is personal and should be kept private. 1. How does payroll withholding help a company's employees? (1-2 sentences. 2.0 points)  Regarding their taxes, your employees are subject to the same rule, You make their life easier by withholding and paying their portion of payroll taxes, allowing them to concentrate on using the money they receive from you to pay for things they want and need. 2. List at least three types of tax that a company may have to withhold from employees' paychecks. (1-3 sentences. 3.0 points)  In general, you must deposit the federal incore tax that has been withheld in addition to the employer's, emplyee's, and union's social security, medicare, and FUTA taxes. Depending on your business and the amount you withhold, the depositing requirements, as detailed in publication 15, change. 3. What are the two main types of tax forms a company provides to employees so the employees can fill out their 1040 tax form? (1-2 sentences. 2.0 points)  The W-2 and 1099 forms are the two main kinds of tax systems. 4. List at least two tips for using credit wisely. (1-2 sentences. 2.0 points)  Using it only earn you can afford to repay it ensuring that you have a solid credit history. 5. Why is a bank more likely to offer you credit if you have a co-signer with good credit? (1-4 sentences. 3.0 points)  Use it when you can afford to repay it ensure that you ah 6. Describe at least three things a bank would consider about you when deciding whether to give you a loan. (1-3 sentences. 3.0 points)  Lenders will take into account significant criteria including your credit history and score, finding a lender ready to lend you money will be challenging if you don't have a credit history or credit score you can obtain a reduced interest rate if you have a high credit score. 7. Write at least two policies that a company could use to decide which customers to offer credit to. (1-2 sentences. 2.0 points)  The first rule that cane be implemented is to decide to only extend credit to people who meet certain requirements, such as having a demonstrated ability to pay back the loan. This can be achieved by setting a limit on the amount of money that a customer can spend.  Another rule would be to require applicants for credit to provide a guarantor who is prepared and willing to repay the loan should the applicant be unable to do so for whatever reason. 8. Which type of credit requires that borrowers carefully manage the debt so it doesn't get out of control? Explain why this type of credit requires more careful management. (1-5 sentences. 3.0 points)  Trade credit is the kind of credit where borrowers must carefully handle their debt to prevent it from spiraling out of control.