click below
click below
Normal Size Small Size show me how
Income and taxes
Term | Definition |
---|---|
BiWeekly | occurring every two weeks or twice a week. |
Dependent | a person who relies on another, especially a family member, for financial support. |
Direct Deposit | electronic transfer of a payment directly from the account of the payer to the recipient's account. |
Earned Income | money derived from paid work. |
Employer | 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 | Income taxes in the United States are imposed by the federal, most states, and many local governments. |
FICA | U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act |
Fringe Benefits | extra benefit supplementing an employee's salary |
Gross Income | households and individuals, gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings |
Hourly Wage | describes a rate an employer agrees to pay a worker per hour worked, such as $12 per hour or $17.50 per hour |
Income Tax | tax levied by a government directly on income, especially an annual tax on personal income |
Medicare Tax | wages that U.S. employers are liable to withhold from employees' paychecks to cover the costs of the Medicare program |
Net Income | is an entity's income minus cost of goods sold, expenses |
Overtime Pay | amount of time someone works beyond normal working hours |
Profit Sharing | a system in which the people who work for a company receive a direct share of the profits |
Salary | regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum |
Sales Commissions | are a common way to motivate and reward salespeople. |
Social Security Tax | tax levied on both employers and employees to fund the Social Security progra |
Tax Deduction | reduction of income that is able to be taxed and is commonly a result of expenses |
Tips | sum of money given to someone as a reward for their services. |
W2 Form | Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them |
W4 Form | Internal Revenue Service tax form completed by an employee in the United States to indicate his or her tax situation to the employer |
Withholding | deduct (tax) from an employee's paycheck and send it directly to the government. |