| A | B |
|---|
| payroll | list of employees and the payments due to each employee for a specific period of time. |
| gross earnings | total amount of money an employee earns in a pay period. |
| salary | fixed amount of money paid to an emplyee 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 | amount paid above the normal rate. |
| commission | 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) | 1935 act that 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. |
| total gross earnings | amount you pay to all emplyees before any deductions are taken out. |
| periodic inventory system | system in which inventory records are updated only after someone makes an acutal physical count of the merchandise on hand. |
| specific identification method | inventory costing method in which the exact cost of each item is determined and assigned to an item. |
| first-in, first-out method (FIFO) | an inventory costing system that assumes the first items purcased (first in) are the first items sold (first out) |
| last-in, first-out method (LIFO) | the last items purchased (last in) are the first items sold (first out) |
