| A | B |
|---|
| earned income | the money an employee receives for doing a job |
| wage | a set amount of pay for every hour of work |
| commission | a percentage of the money taken in from sales made |
| piecework | when employees are paid a fixed amount of money for each piece of work done |
| medicare | the federal government's insurance program for people over age 65 or for certain disabled people |
| deductions | amounts of money subtracted from an employee's total pay |
| gross pay | the total amount an employee earns for a pay period before any deductions are subtracted |
| net pay | take-home pay |
| exemption | a set amont of money on which a person does not have to pay tax |
| W-4 Form | a form that tells the employer how much tax to withhold from an employee's paycheck |
| W-2 Form | a form that states the amount the employee was paid in the previous year |
| bonus | extra pay in addition to the worker's regualr pay, usually taken out of the company's profits |
| salary | a set amount of money paid to an employee for a certain period of time |
| tips | small amounts of money given by customers to service-related workers in return for service |
| FICA | Federal Insurance Contributions Act; social security tax withheld |
| medicaid | the federal government's program that pays for health care services for those people who can't afford to pay for their own |
| unemployment insurance | provides benefits to workers who have lost their jobs (paid for by the state taxing employers) |
