Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Income and Taxes
| Term | Definition |
|---|---|
| Biweekly | done, produced, occurring 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 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 | the 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 Contribution Act tax) a U.S. federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare |
| Fringe Benefits | an extra benefit supplementing an employee's salary; ex) a company car, subsidized meals, health care, etc. |
| Gross Income | an individual's total pay from their employer before taxes of other deductions |
| Hourly Wage | the rate an employer agrees to pay a worker per hour worked |
| Income Tax | tax levied by the government directly on income, especially an annual tax on personal income |
| Medicare Tax | a tax on wages that U.S. employers are liable to withhold from employees' paychecks to cover the costs of the Medicare program |
| Net Income | an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period |
| Overtime Pay | the amount of overtime paid to each employee in a pay period |
| Profit Sharing | a system un 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 | an additional compensation the employee receives for meeting and exceeding the minimum sales threshold |
| Social Security Tax | the 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 as a way of rewarding them for their services |
| W2 Form | the form that an employer must send to an employee and the IRS at the end of each year; the official Wage and Tax Statement that reports an employee's annual wages and the amount of taxes withheld from their paycheck |
| W4 Form | an IRS tax form completed by an employee in the U.S. to indicate his or her tax situation (exemptions, status, etc.) to the employer |
| Withholding Allowance | an exemptions that reduces how much income tax an employer deducts from an employee's paycheck |
| wage | a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker |
Created by:
dkaiser20
Popular Finance sets