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Income and Taxes
| Term | Definition |
|---|---|
| BiWeekly | done, produced, or occurring every two weeks or twice a week |
| dependent | contingent on or determined by |
| direct deposit | the electronic transfer of a payment directly from the account of the payer to the recipient's account. |
| earned income | money derived from paid work |
| employee | a person employed for wages or salary, especially at nonexecutive level. |
| employer | a person or organization that employs people. |
| federal income tax | The federal income tax is the tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entitie |
| FICA (Federal Insurance Contributions Act) | FICA tax is the money that is taken out of workers' paychecks to pay older Americans their Social Security retirement and Medicare (Hospital Insurance) benefits. It is a mandatory payroll deduction. |
| Fringe benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc. |
| gross income | Gross income for an individual consists of income from wages and salary, and other forms of income including pensions, alimony, interest, dividends, and rental income |
| hourly wage | The “average” or “mean” is an estimated hourly rate calculated using the varying hourly rates of a group of workers in a specific occupation. |
| income tax | tax levied by a government directly on income, especially an annual tax on personal income. |
| medicare tax | a payroll tax. It is an employee and employer tax, meaning you must withhold a certain amount from an employee's wages and make a matching contribution. You must do this for each one of your employees |
| net income | In business and accounting, net income is a measure of the profitability of a venture. It is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period |
| overtime pay | money earned at an increased rate for working more than the usual number of hours in one week When he works on the weekends, he collects overtime pay. |
| profit sharing | a system in which the people who work for a company receive a direct share of the profits. |
| salary | a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker. |
| sales commissions | additional compensation the employee receives for meeting and exceeding the minimum sales threshold |
| social security tax | tax levied on both employers and employees to fund the Social Security program. |
| tax deduction | Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and credits |
| tips | To Insure Promptness / To Insure Prompt Service. So apparently the word tip(s), meaning gratuity, is nothing but an acronym |
| W2 form | form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of each year. |
| W4 form | (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer. |
| withholding allowance | exemption that reduces how much income tax an employer deducts from an employee's paycheck. ... The employer then uses the W-4 information to determine how much of an employee's pay to subtract from their paycheck to remit to the tax authoritie |
Created by:
zbarlettedye20
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