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income and taxes
| Term | Definition |
|---|---|
| Bi-weekly | done, produced, or 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 | taxes from the federal government imposed on citizens' income |
| FICA | Federal Insurance Contributions Act- added to payroll to help both employee and employer pay 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 | sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. |
| hourly wage | pay that a person earns based on a set hourly rate |
| income tax | tax levied by a government directly on income, especially an annual tax on personal income. |
| medicare tax | federal employment tax that funds a portion of the Medicare insurance 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 | 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 | the amount of compensation paid to a person based on the amount of sales generated. |
| social security tax | the tax levied on both employers and employees to fund the Social Security program |
| 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 | shows the amount of taxes withheld from your paycheck for the year |
| W4 form | tells the employer the correct amount of federal tax to withhold from an employee's paycheck. |
| withholding | refusal to give something that is due or desired. |
Created by:
jmillar23
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