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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 | wages, salaries, bonuses, commissions, tips, and net earnings from self-employment. |
| Employer | a person or organization that employs people. |
| Employee | a person employed for wages or salary, especially at nonexecutive level. |
| Exemptions | the process of freeing or state of being free from an obligation or liability imposed on others. |
| Federal income tax | tax on income and is imposed by the U.S. federal government. |
| FICA | FICA is a U.S. federal payroll tax. 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 | the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. |
| Hourly wage | a rate an employer agrees to pay a worker per hour worked |
| Income tax | tax levied by a government directly on income, especially an annual tax on personal income. |
| Medicare tax | a tax on wages that U.S. employers are liable to withhold from employees' paychecks to cover the costs of the Medicare program. |
| Net income | an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. |
| Overtime pay | the additional pay rate paid for working more than a specific number of hours in a week. |
| 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 | an additional compensation the employee receives for meeting and exceeding the minimum sales threshold. |
| Social security tax | The tax levied on both employers and employees to fund the social security program |
| Tax deduction | a 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 | a required tax form that employers send to employees and the Social Security Administration (SSA) after the year ends. Employees then use information on the W-2 form to fill out their income tax forms. |
| W4 form | an Internal Revenue Service tax form completed by an employee in the United States to indicate his or her tax situation to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck. |
| Withholding | refusal to give something that is due or desired. |
Created by:
Mstalker22
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