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4.01Personal Finance

Work Compensation and Forms

Wage The amount of money paid for a specified quantity of labor.
Salary A set of money paid for a set period of time worked.
Commisson Income paid as a percentage of sales made by a salesman.
Tip Money paid by customers to those who provide services.
Bonus Money paid in addition to base pay, either as a reward for performance or as a share of profit.
Paycheck A form of payment to an employee.
Direct Deposit An employer deposits the employee's paycheck directly into the authorized employee's depository institution account.
Payroll Card A prepaid card that is offered too employees as an alternative to paper paychecks or directly depositing wages into an employee's depository institution.
Paycheck Stub This part lists the paycheck deductions as well as the other important information.
Pay Period The length of time for which an employee's wages are calculated.
Gross Pay The total amount of money earned during the pay period before deductions.
Net Pay The amount of money left after all the deductions have been taken from the gross pay earned in the pay period.
Deduction Money subtracted from gross pay for required taxes , employee insurance, and retirement benefits.
Federal Withholding Tax The amount required by law for employers to withhold from earned wages to pay federal income taxes.
State Withholding Tax The percentage deducted from an individual's paycheck to assist in funding government agencies within the state.
Created by: Le'Quisha