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income and taxes
| Question | Answer |
|---|---|
| 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 | tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities |
| FICA | Federal Insurance Contributions Act (FICA) tax is a United States federal payroll (or employment) tax imposed on both employees and employers 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 | 1. An individual's total personal income, before accounting for taxes or deductions. 2. A company's revenue minus cost of goods sold. Also called gross profit and, when it is expressed as a percentage of revenue, gross margin. |
| hourly wage | a rate an employer agrees to pay a worker per hour worked, such as $12 per hour or $17.50 per hour. The “average” or “mean” is an estimated hourly rate calculated using the varying hourly rates of a group of workers in a specific occupation. |
| income tax | tax levied by a government directly on income, especially an annual tax on personal income. |
| medicare tax | 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 | Net income (NI) is a company's total earnings |
| overtime pay | overtime pay is time and one-half of the employee's regular rate of 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 | additional compensation the employee receives for exceeding expectations. Employers pay employees a sales commission to incentivize the employees to produce more sales and to reward and recognize people who perform most productively. |
| social security tax | tax levied on both employers and employees used to fund the Social Security program. Social Security tax is usually collected in the form of payroll tax or self-employment tax. |
| tax deduction | 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 | The W-2 form is the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. |
| W4 form | The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck based on the employee's marital status, number of exemptions and dependents and other factors. |
| 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:
Xander_pg
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