click below
click below
Normal Size Small Size show me how
income and taxes
Term | Definition |
---|---|
Biweekly | a periodical that appears every two weeks or twice a week |
Dependent | requiring someone or something for financial, emotional, or other support |
Direct Deposit | the electronic transfer of a payment directly from the account of the payer to the recipient's account. |
Earned Income | money derived from paid work. |
Employee | a person employed for wages or salary, especially at nonexecutive level |
Employer | a person or organization that employs people |
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 federal income tax is 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 Insurance Contributions Act (FICA) tax is a United States federal payroll (or employment) |
Fringe Benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance |
Gross Income | An individual's total personal income, before accounting for taxes or deductions |
Hourly Wage | computed or totaled in terms of an hour; using an hour as a basic unit of reckoning |
Income Tax | a tax levied on incomes, especially an annual government tax on personal incomes. |
Medicare Tax | Investment & Finance Definition. A tax deducted from employees' paychecks that goes to pay for medical benefits for people over 65 years of age. Medicare tax is paid by both employee and employer |
Net Income | an entity's income minus cost of goods sold, expenses and taxes for an accounting period. |
Overtime Pay | time and one-half of the employee's regular rate of 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 | is additional compensation the employee receives for exceeding expectations |
Social Security Tax | is the tax levied on both employers and employees used to fund the Social Security program. Social Security tax is usually collected in the form of payroll tax or self-employment tax. |
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 | Income earned above hourly wage for a job r service to a customer |
W2 Form | is the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year |
W4 Form | tells the employer the correct amount of tax to withhold from an employee's paycheck based on the employee's marital status, number of exemptions and dependents and other factors |
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 |