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Income and Taxes
| Question | Answer |
|---|---|
| BiWeekly | occurring every two weeks |
| Dependent | a child, spouse, parent, or certain other relative to whom one contributes all or a major amount of necessary financial support |
| Direct Deposit | a plan in which salaries or other payments are transferred by the paying agency directly to the accounts of the recipients |
| Earned Income | income from wages, salaries, fees, or the like, accruing from labor or services performed by the earner |
| Employee | a person working for another person or a business firm for pay |
| Employer | a person or thing that makes use of or occupies someone or something |
| Exemptions | the process of exempting a person from paying taxes on a specified amount of income for themselves and their dependents |
| Federal Income Tax | a tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities |
| FICA | federal law that requires you to withhold three separate taxes from the wages you pay your employees |
| Fringe Benefits | a form of pay for the performance of services |
| Gross Income | the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident |
| Hourly Wage | describes a rate an employer agrees to pay a worker per hour worked |
| Income Tax | tax levied by a government directly on income, especially an annual tax on personal income |
| Medicare Tax | Tax deducted from the wages of every legally working American that is used to pay for the Medicare program provided to individuals over the age of 65 |
| Net Income | is an entity's income minus cost of goods sold, expenses and taxes for an accounting period |
| Overtime Pay | Additional financial compensation for any hours worked by nonexempt staff over the amount of forty hours per week |
| 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 | the salesperson's only income comes from sales commission. Others pay commission on top of a base salary or wage. The intent of commission is motivate the salesperson to sell more |
| Social Security Tax | any government system that provides monetary assistance to people with an inadequate or no income |
| Tax Deduction | a deduction from gross income that arises due to various types of expenses incurred by a taxpayer. Tax deductions are removed from taxable income (adjusted gross income) and thus lower the overall tax-expense liability |
| Tips | a sum of money given to someone as a reward for their services |
| W2 Form | a standard tax form showing the total wages paid to an employee and the taxes withheld during the calendar year |
| W4 Form | a form completed by an employee to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck |
| Withholding Allowance | employee-claimed exemptions on the tax form employers use to determine how much of an employee's pay to subtract from his or her paycheck to remit to the tax authorities |
Created by:
Hreiman16
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