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Income expenditure
| Term | Definition |
|---|---|
| Income | The money received by a person or a household. |
| Benefit in Kind | Is a thing that you have that is worth cash but you don't physically have the cash. |
| Salary | A salary is a fixed annual payment that is given to an employee no matter how many hours they have worked. |
| Wage | A wage is a payment received for work done, normally calculated on the basis of actual work completed or the amount of time spent working. |
| Time rate | Wage calculation based on how many hours spent working. |
| Overtime payments | When the employee works longer than the standard working week may receive a higher rate of payment for those hours. |
| Piece Rate | Calculation based on the number of items completed. |
| Commission | Some workers, receive a payment based on the value of the goods or services they have sold. |
| Bonus Payments | Some employers reward their staff with extra payments for meeting their performance targets or deadlines. |
| Basic pay | The amount earned before any extra payments (overtime ,bonuses) are added |
| Gross pay | Is the of basic pay plus any extra income earned from overtime, bonuses or commission. In other words the total pay before any deductions. |
| Net Pay | also known as take-home pay, is the amount left after all deductions from gross pay. |
| Statutory deductions | These are compulsory. Every worker by law has to pay. |
| Voluntary Deductions | These are not compulsory, but workers can choose to pay them. |
| Pay as you earn (PAYE) | Income tax system. Under this system, tax is paid on income as it is earned. |
| Pay related social insurance (PRSI) | Allows employees to claim certain benefits in the future if needed e.g. a state pension. |
| Universal Social Charge (USC) | Applies to all workers whose income is above a certain limit and is used to fund government spending. |
| Disposable Income | The remaining income after all income taxes and statutory payments have been made. |
| Discretionary Income | The income left over after taxes and essential spending on items such as food and bills. You can spend this how you want. |
| Expenditure | Refers to the way people spend their income in order to satisfy various needs and wants. |
| Fixed expenditure | Means that the same amount of money is spent on a regular basis and does not depend on usage e.g. car tax. |
| Irregular expenditure | Occur on a less regular basis or the amount involved may vary with usage, e.g. fuel for car, groceries. |
| Discretionary expenditure | Spending on non-essential items that we choose to buy, e.g. holidays and gifts. |
| Current expenditure | Repeated or ongoing day-to-day spending e.g. groceries. |
| Capital expenditure | A once-off or long-term spending, e.g. a new car. |
| Cash flow | The net amount of cash and cash equivalents being transferred in and out of a company. |
| Impulse buying | When we buy things that is unplanned |
| Dividend | A share of the profits from investing in a business. |
Created by:
Seán Hand
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