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Income and Taxes
| Term | Definition |
|---|---|
| BiWeekly | done, produced, or occurring every two weeks or twice a week |
| Dependant | a person who relies on another as a primary source of income |
| 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 freeing or state of being free from an obligation or liability imposed on others |
| Federal Tax Income | the annual earnings of individuals, corporations, trusts, and other legal entities |
| FICA | Federal Insurance Contributions Act. the money that is taken out of workers' paychecks to pay older Americans their Social Security retirement 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 you earn before anything is taken out for taxes or other deductions |
| Hourly Wage | a 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 | tax on wages that U.S. employers are liable to withhold from employees' paychecks to cover the costs of the Medicare program |
| Net Income | the residual amount of earnings after all expenses have been deducted from sales |
| Overtime Pay | the amount of overtime paid to each employee in a pay period |
| 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 |
| Sales Commissions | additional compensation the employee receives for meeting and exceeding the minimum sales threshold |
| Social Security Tax | tax levied on both employers and employees to fund the Social Security program |
| Tax Deduction | deduction that lowers a person's tax liability by lowering his taxable income |
| Tips | a sum of money given to someone as a reward for their services |
| W2 Form | form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of each year |
| W4 Form | an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation |
| Withholding Allowance | an exemption that reduces how much income tax an employer deducts from an employee's paycheck |
Created by:
mattpalmer21
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