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PCS Financial Math

Chapter 2 Vocabulary - Net Income

TermDefinition
federal income tax money withheld by an employer form an employee's paycheck to pay federal government taxes
personal exemptions the number of people an employee supports, on which taxes are based also called withholding allowances
graduated income tax an income tax in which the tax rate increases at different levels of income
Social Security a federal government program to pay for retirement and disability benefits, financed by taxes
Medicare a federal government program to provide medical insurance, financed by taxes
group insurance insurance offered by many businesses to employees, paid in part by the business and in part by deductions from employees' paychecks
net pay the amount of money you actually receive in your paycheck after deductions, also called take-home pay
Created by: Ms.Sala
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