| A | B |
|---|
| FICA | Consists of Medicare and Social Security |
| Social Security | A retirement/disability benefit |
| Medicare | Govt. health insurance for people 65 and older. |
| Federal Income Tax | Used for national defense and various community development programs. |
| State Income Tax | Used for welfare, education and state highways. |
| 401K | An employer sponsored retirement plan. |
| Net Pay | Gross Pay - Deductions |
| W-4 | A form filled out when you first start your job that indcates number of allowances. |
| W-2 | A form received at tax time that indicates total wages and total taxes withheld. |
| 1040EZ | A federal tax used to file taxes. |
| Allowances | Used in calculating the amount of income tax to withhold from your paycheck. |
| Profit Sharing | A company shares a portion of the profits with its employees. |
| Stock Options | Employee may receive stock in a company as an added employment benefit. |
| Pension | An employer sponsored retirement package. |
| Mediation | 3rd party recommendation, not binding |
| Arbitration | 3rd party decision, legally binding |
| April 15th | Tax Deadline |
| Claiming 0 | More taxes are taken out of your paycheck...bigger refund. |
| Claiming 1 or higher | Less taxes are taken out of your paycheck...smaller refund. |
| Compressed Workweek | An arrangement where an employee works the standard number of hours in a week, but compresses those hours into fewer days. |
| Sabbaticals | A period of paid leave granted to study or travel |
| Interest Income | Income earned through depositing money in savings programs, buying certificates of deposit (CDs) or bonds, or lending your money. |
| Unemployment Compensation | Money paid to workers who have lost their jobs. |
| Taxable Income | Your taxable income and filing status will determine the amount of tax you should pay |
| 1040 EZ | Federal tax form |
| WI Z | State tax form |
| Vested | A length of time that an employer will required an employee to work before they can take full advantage of retirement benefits. |
| Rollover | Moving one investment (401K) into another investment vehicle. |
| Group health insurance | A coverage plan offered by an employer that covers the individuals in that group and their dependents under a single policy. |
| Claim | A request for the insurance company to pay for medical services. |
| Deductible | The amount of money you must pay each year to cover eligible medical expenses before your insurance policy starts paying. |
| Coinsurance | The amount you pay to share the cost of covered services after your deductible has been paid. |
