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Income and Taxes
| Term | Definition |
|---|---|
| BiWeekly | done, produced, or occurring 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. Often contrasted with unearned income. |
| employee | a person employed for wages or salary, especially at nonexecutive level. |
| employer | a person or organization that employs people. |
| exemptions | he process of freeing or state of being free from an obligation or liability imposed on others. |
| federal income tax | In the United States, a tax is imposed on income by the federal, most state, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. |
| FICA | Federal Insurance Contributions Act. he Federal Insurance Contributions Act is a United States federal payroll (or employment) contribution directed towards both employees and employers 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 | total revenue received before any deductions or allowances, as for rent, cost of goods sold, taxes, etc. |
| hourly wage | A regular payment, usually on an hourly, daily, or weekly basis, made by an employer to an employee, especially for manual or unskilled work. |
| 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 | the excess of revenues and gains of a business over expenses and losses during a given period of time. |
| overtime pay | money earned at an increased rate for working more than the usual number of hours in one 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 | A sales commission is additional compensation the employee receives for meeting and exceeding the minimum sales threshold. Employers pay employees a sales commission to incentivize the employees to produce more sales. |
| social security tax | Social Security tax is the tax levied on both employers and employees to fund the Social Security program. |
| tax deduction | 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 | a sum of money given to someone as a reward for their services |
| W2 form | Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation. |
| W4 form | form W-4 is an Internal Revenue Service tax form that is filled out by employees to indicate their tax situation to their employer. |
| withholding allowance | A withholding allowance is like an exemption from paying a certain amount of income tax. So when you claim an allowance, you’re telling your employer (and the government) that you qualify not to pay a certain amount of tax. |
Created by:
cvancheri20
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