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Income and Taxes
Term | Definition |
---|---|
Biweekly | Done, produced, or occurring every two weeks or twice a week |
Dependent | a person who relies on another, especially a family member, for financial support. |
Direct deposit | The electronic transfer of a payment directly from the account of the payer to the recipients account. |
Earned income | All income from employment |
Employee | A person employed for wages or salary, especially at nonexecutive level |
Employer | A person or organization that employes people |
Exemptions | The process of freeing or state of brunt free from an obligation or liability imposed in others. |
Federal income tax | the federal income tax is the tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. |
FICA | FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. |
Fringe benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc. |
Gross income | Gross income represents the total income from all sources, including returns, discounts, and allowances, before deducting any expenses or taxes. |
Hourly wage | Hourly pay is pay that a person earns based on a set hourly rate |
Income tax | Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities. |
Medicare tax | Medicare tax, also known as “hospital insurance tax,” is a federal employment tax that funds a portion of the Medicare insurance program. |
Net income | Net income, also called net earnings, is sales minus cost of goods sold, general expenses, taxes, and interest. |
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 | Commissions are a form of variable-pay remuneration for services rendered or products sold. |
Social security tax | Social Security tax is the tax levied on both employers and employees to fund the Social Security program in the U.S. |
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. |
Tips | a sum of money customarily given by a client or customer to certain service sector workers for the service they have performed |
W2 form | Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them |
W4 form | Form W-4 is an Internal Revenue Service tax form completed by an employee in the United States to indicate his or her tax situation to the employer. |
Withholding | the amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax. Score 95 |