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personal finance 1

QuestionAnswer
what are taxes? Required charges of citizens by local, state, and federal governments
what is a from W-4 Employee’s Withholding Allowance Certificate
what is a form I-9 Used to prove the identity of people and avoid hiring non United States citizens
what is a form W-2 States the amount of money earned and taxes paid throughout the previous year
what are the three payrolls direct deposit, paycheck, payroll card
what is a paycheck? Paper check with stub
what is a direct deposit? Employers directly deposit employee’s paycheck into the authorized employee’s bank account
what is a payroll card? A payroll card electronically carries the balance of the employee’s net income
what is a pro of a paycheck? Employee controls when the check is deposited
what is a con of a paycheck? Least secure, employee responsible for getting it to the bank
what is a pro of payroll card? Wages automatically loaded onto a card
what is a con of a payroll card? May charge fees for use of the card
what is a pro of direct deposit? No direct handling of check
what is a con of a direct deposit? Employee knows exactly when he/she will be paid
what is personal information? The employee’s full name, address, and social security number or employee identification number
what is a pay period? The length of time for which an employee’s wages are calculated
what is Gross income? he total amount of money earned before payroll withholdings
what is FICA? helps provide retirement income for the elderly and pays disability benefits
what is FED/MED-EE health care program for the elderly and disabled
what is net come? The amount left after all payroll deductions have been taken from the gross income
what is a year-to-date? Totals all of the deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period indicated on the paycheck stub
Created by: 15156