1. Payroll withholding helps a company's employees by automatically deducting taxes and other withholdings from their paychecks, which simplifies the tax process and ensures that employees are paying the correct amount of taxes throughout the year.
2. Three types of tax that a company may have to withhold from employees' paychecks include federal income tax, Social Security tax, and Medicare tax.
3. The two main types of tax forms a company provides to employees so they can fill out their 1040 tax form are Form W-2 and Form 1095-C.
4. Two tips for using credit wisely include paying bills on time and in full, and avoiding carrying a balance on credit cards whenever possible.
5. A bank is more likely to offer credit if you have a co-signer with good credit because the co-signer serves as a guarantor for the loan, which reduces the risk for the bank if the borrower defaults on the loan.
6. Three things a bank would consider about you when deciding whether to give you a loan include your credit score, income, and debt-to-income ratio.
7. Two policies that a company could use to decide which customers to offer credit to include requiring a minimum credit score or income level, and conducting a credit check or background check on potential customers.
8. Revolving credit requires careful management because it allows borrowers to carry a balance from month to month, which can lead to high interest charges and debt if not managed properly. Borrowers must make sure to pay at least the minimum payment each month and avoid carrying a balance for too long to avoid high interest charges.