Minecraft
Preparation
Lesson Narrative
Students analyze employment forms and the gig economy, mastering the W-4 strategy, Form I-9 for employment eligibility, 1099s, and the mechanics of the self-employment tax.
Learning Goals
• Complete a W-4 to optimize tax withholding.
• Verify employment eligibility using Form I-9.
• Calculate the financial impact of 1099 self-employment taxes.
Student Facing Learning Goals
Let's learn how to fill out our first-day job paperwork and figure out why driving for food delivery apps might not pay as much as it seems.
Student Facing Learning Targets
• I can confidently fill out a W-4 form.
• I know what ID documents I need for an I-9.
• I can calculate self-employment tax for gig work.
Required Academic Standards
National Jump$tart Standards:
• Earning Income (Standard 2): Analyze how taxes and other deductions affect income.
Glossary Entries
W-4 Form: An IRS form employees complete to let employers know how much tax to withhold from their paycheck.
Form I-9: A form used to verify the identity and employment authorization of individuals hired for employment in the U.S.
1099 Contractor: An independent contractor who is not legally an employee and receives no corporate benefits or tax withholding.
Self-Employment Tax: A tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves (15.3%).
Lesson
Warm Up
1.14.1: The First Day Forms
Launch: Have students stand in randomized groups of 3 at vertical whiteboards. Present the prompt verbally. Give them 4 minutes.
Synthesis: Select two groups to share. Establish the baseline: The W-4 dictates your paycheck size. The I-9 proves you are legally allowed to work in the United States.
Student Facing Task
You show up for your first day of work. HR hands you a W-4 and an I-9.
1. What two physical forms of identification should you have brought with you from home to complete the I-9?
2. If you fill out the W-4 incorrectly, what massive problem will you have on payday?
Activity 1
1.14.2: W-2 vs. 1099 Math
Launch: Keep students at whiteboards. Project the gig economy comparison. Give groups 8 minutes.
Synthesis: Have the class observe the boards. (Teacher Key: Gig workers (1099) have no minimum wage, no health insurance, no paid time off, and must pay for their own gas and vehicle maintenance).
Student Facing Task
Job A pays $15/hr as a standard W-2 employee at a grocery store.
Job B pays $20/hr as a 1099 independent contractor driving for a delivery app.
1. List three hidden expenses the Job B driver has to pay for out of their own pocket that the Job A worker doesn't.
2. Why might Job A actually leave you with more net cash?
Activity 2
1.14.3: The Self-Employment Tax Penalty
Launch: Present the FICA tax scenario. Give groups 8 minutes to calculate the penalty.
Synthesis: Facilitate a class debate. (Key: W-2 employees split FICA taxes with their boss. 1099 workers are their own boss, so they are legally forced to pay both halves—a massive 15.3% tax hit).
Student Facing Task
FICA taxes for Social Security and Medicare cost 15.3% of your income.
1. If you are a W-2 employee making $1,000, your boss pays half. Calculate your 7.65% share.
2. If you are a 1099 Gig Worker making $1,000, you have to pay the whole thing. Calculate your 15.3% share.
3. Exactly how much extra cash did the gig worker lose to taxes?
Lesson Synthesis
Narrative: Bring the class back to their seats. Review the learning targets. Summarize: "The Gig Economy provides massive flexibility, but it transfers all the financial risk and tax liability from the corporation directly onto you. When you work a 1099 job, you must save 30% of your income for taxes, or you will face a disaster in April."
Cool Down
1.14.4: The W-4 Strategy
Narrative: This exit ticket serves as a formative assessment on tax withholdings. Teacher Rubric: A successful response must articulate that claiming fewer allowances/dependents tells the government to take more money out per check, resulting in less monthly cash flow but a higher chance of a refund in April.
Student Facing Task
If you are filling out your W-4 and you want the absolute maximum amount of cash in your weekly paycheck to help you pay for an expensive apartment, how should you adjust your withholdings, and what is the risk of doing this?