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income and taxes
| Term | Definition |
|---|---|
| BiWeekly | appearing or taking place every two weeks or twice a week |
| Dependent | a person who relies on another, especially a family member, for financial support |
| Direct Deposit | the electronic transfer of of a payment directly from the account of the payer to the recipients account |
| Earned Income | money derived from paid work |
| Employee | a person employed for wages or salary, especially at non-executive 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 tax levied by the United States Internal Revenue Service |
| FICA | Federal Insurance Contributions Act is an act that takes money out of peoples checks to fund social security and medicare |
| Fringe Benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc. |
| Gross Income | the amount of money someone earns without taxes or other deductions being taken out |
| Hourly Wage | the 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 | a tax deducted from employee's paycheck that goes to pay for medical benefits for people over 65 years of age |
| Net Income | refers to an individual's income after taking taxes and deductions into account |
| Overtime Pay | Overtime pay is the amount of overtime paid to each employee in a pay period. Overtime pay is calculated: Hourly pay rate x 1.5 x overtime hours worked. |
| 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 | additional compensation the employee receives for exceeding expectations. |
| Social Security Tax | a tax levied on both employers and employees to fund the Social Security program. |
| Tax Deduction | 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 | a sum of money given to someone as a reward for their services. |
| W2 Form | a form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year |
| W4 Form | a form that 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 |
Created by:
sseneca19
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