Term | Definition |
Commission | A fee that a salesperson recieves upon completion of a sale. |
Dependent | A person who relies on the taxpayer for financial support. |
Direct Deposit | Wages are deposited directly into a depository institution account. |
Employee Benefits | Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages. |
Employer Contributions | The amount the employer has contributed to various employee benefits. |
Employment | Agreement between an employer and employee. |
Form W-4 (Employee's Withholding Allowance Certificate) | The form that determines the percentage of an employee's pay that will be withheld for federal taxes. |
Gross Income | Amount of money earned before payroll taxes |
Income Tax | Taxes paid to federal, state, and local goverments on the amount of money earned. |
Medicare | A federal program whose main purpose is to help pay for health care for those over 65. |
Net Income | Amount of money left once all deductions have been taken from gross income. |
Paper Paycheck | A check written to a worker in the amount of money earned. |
Payroll Card | A reloadable debit card onto which a worker's pay is loaded. |
Payroll Tax | Taxes withheld or paid on your behalf by your employer. |
Pay Period | The regular schedule by which employers pay employees. |
Pay Stub | Outlines the deductions made to wages. |
Salary | Fixed amount of money or compensation paid to an employee by an employer in return for work performed. |
Social Security | A federal government program that funds retirement accounts, financially supports citizens who have experienced profound disability, the premature death of a parent(if under the age of 18), or the premature death of a spouse in a family with children. |
Tax Liability | Total tax bill. |
Unemployment Insurance | A source of income for workers who have lost their jobs through no fault of their own. |
Workers' Compensation | A state-sponsered system that pays monetary benefits to workers who become injured or disabled on the job. |