Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Income and Taxes
| Term | Definition |
|---|---|
| BiWeekly | appearing or taking place 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 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 | A tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities. |
| FICA (abbreviation and definition) | Federal Insurance Contributions Act requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare |
| Fringe Benefits | an extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc. |
| Gross Income | Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident. |
| Hourly Wage | An amount of money paid each hour to compensate an employee for the amount of time he/she spends working. |
| Income Tax | tax levied by a government directly on income, especially an annual tax on personal income. |
| Medicare Tax | A tax deducted from employees’ paychecks that goes to pay for medical benefits for people over 65 years of age. Medicare tax is paid by both employee and employer. |
| Net Income | an entity's income minus cost of goods sold, expenses and taxes for an accounting period. |
| Overtime Pay | additional amounts paid to hourly employees who work more than 40 hours in a workweek. |
| 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 payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold. |
| Social Security Tax | The tax levied on both employers and employees used to fund the Social Security program. |
| Tax Deduction | A deduction from gross income that arises due to various types of expenses incurred by a taxpayer. |
| Tips | a sum of money given to someone as a reward for their services. |
| W2 Form | The form that an employer must send to an employee and the IRS at the end of the year. |
| W4 Form | A form completed by an employee to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck. |
| Withholding Allowance | Employee-claimed exemptions on the tax form employers use to determine how much of an employee's pay to subtract from his or her paycheck to remit to the tax authorities. |
Created by:
grosario18
Popular Finance sets