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Accounting 1, Ch. 12

Ch. 12 Vocabulary Words

Salary The money paid for employee services.
Pay Period The period covered by salary payment.
Payroll The total amount earned by all employees for a pay period.
Total Earnings The total pay due for a pay period before deductions. (They are sometimes referred to as gross pay or gross earnings.)
Payroll Taxes Taxes based on the payroll of a business.
Withholding Allowance A deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Social Security Tax A federal tax paid for old-age, survivors, and disability insurance.
Medicare Tax A federal tax paid for hospital insurance.
Tax Base The maximum amount of earnings on which a tax is calculated.
Payroll Register A business form used to record payroll information.
Net Pay The total earnings paid to an employee after payroll taxes and other deductions.
Employee Earnings Record A business form used to record details affecting payments made to an employee.
Created by: thedeadpoet