| A | B |
|---|
| payroll | a list of employees and the payments due to each employee for a specific period of time |
| pay period | specific period of time over which you pay your employees |
| gross earnings | total amount of money an employee earns in a pay period |
| salary | a fixed amount of money paid to an employee for each pay period, regardless of the number of hours worked |
| hourly wage | a specific amount of money paid per hour to an employee |
| overtime rate | the amount paid above the normal rate (usually 1.5 x normal rate) |
| commission | an amount of money paid to an employee based on a percentage of the employee's sales |
| deductions | various amounts that are subtracted from an employee's gross earnings |
| Federal Insurance Contributions Act (FICA) | established the present Social Security system. |
| Social Security Tax | finances the federal programs that provide retirement, disability, and life insurance benefits |
| Medicare Tax | the tax that finances part of the Medicare program |
| payroll register | a document that summarizes information about employee earnings and deductions for each pay period |
| direct deposit | net pay is deposited automatically into your bank account |
| total gross earnings | amount you pay to all emplyees before any deducation are taken out |
| perpetual inventory system | a system that keeps a constant, up-to-date record of merchandise on hand |
| point-of-sale terminal | terminals are linked to a centeralized computer system that keeps track of sales |
| periodic inventory system | inventory records are updated only after somone makes an actual physical count of the merchandise on hand |
| specific identification method | the exact cost of each item is determined and assigned to that item |
| first-in, first-out method (FIFO) | assigning cost assumes that the first items purchased are the first items sold |
| last-in, first-out method (LIFO) | assigning cost assumes that the last items purchased are the first items sold |
| inventory turnover | the number of times you sell your inventory in a given time period |
