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Income and Taxes
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. |
| Employee | a person employed for wages or salary, especially at non executive 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 | is the tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. |
| FICA (abbreviation and definition) | It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. |
| Fringe Benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc. |
| Gross Income | Gross income represents the total income from all sources, including returns, discounts, and allowances, before deducting any expenses or taxes. |
| Hourly Wage | Hourly pay is pay that a person earns based on a set hourly rate. |
| Income Tax | The term income tax refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. |
| Medicare Tax | Medicare tax, also known as “hospital insurance tax,” is a federal employment tax that funds a portion of the Medicare insurance program. |
| Net Income | Net income, also called net earnings, is sales minus cost of goods sold, general expenses, taxes, and interest. |
| Overtime Pay | money earned at an increased rate for working more than the usual number of hours in one week When he works on the weekends, he collects overtime pay. |
| 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 | Sales commission is the percentage of the value of a sale that a sales associate or sales representative may earn. |
| Social Security Tax | Social Security tax is the tax levied on both employers and employees to fund the Social Security program in the U.S. |
| Tax Deduction | A tax deduction is a deduction that lowers a person's or an organization's tax liability by lowering their taxable income. |
| Tips | A gratuity (normally called a tip) is a sum of money customarily given by a client or customer to certain service sector workers for the service they have performed, in addition to the basic price of the service. |
| W2 Form | Form W-2 reflects your income earned and taxes withheld from the prior year to be reported on your income tax returns. |
| W4 Form | Employees fill out a W-4 form to let employers know how much tax to withhold from their paycheck based on the employee's marital status, number of exemptions |
| Withholding | is the amount of federal income tax withheld from your paycheck. |
Created by:
jaycebalestrieri
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