| A | B |
|---|
| Employee earnings record | A business form used to record details affecting payments made to an employee |
| Medicare Tax | A federal tax paid for hospital insurance |
| Net pay | The total earnings paid to an employee after payroll taxes and other deductions |
| Pay period | The period covered by a salary payment |
| Payroll | The total amount earned by all employees for a pay period |
| Payroll register | A business form used to record payroll information |
| Payroll taxes | Taxes based on the payroll of a business |
| Salary | The money paid for employee services |
| Social security tax | A federal tax paid for old-age, survivors, and disability insurance |
| Tax base | The maximum amount of earnings on which a tax is calculated |
| total earnings | The total pay due for a pay period before deductions |
| withholding allowance | A deductions from total earnings for each person legally supported by a taxpayer, including the employee |
| Payroll records | Business use these to inform employees of their annual earnings and to prepare payroll reports |
| Gross pay | Sometimes referred to as total earnings |
| Liability to an employer | Payroll taxes withheld |
| Employee total earnings | Calculated as regular hours X regular rate, plus overtime hours X overtime rate |
| Single person | will have more income tax withheld than a married employee |
| Federal, Social Security and Medicare taxes | Required by law to be withheld from employee salaries |
| Social Security and Medicare Taxes | Paid by the employer and employee |
| Employer payroll taxes | Business expenses |
| Worksheet | Used to plan adjustments and sort financial statement information |
| Taxable earnings | Total earnings subject to federal unemployment tax |
| January 31 of the current year | Employers are required to furnish each employee with a W-2 before this date |
