| A | B |
|---|
| social security | the nation's retirement program |
| medicare | the nation's health care policy for the elderly and disabled |
| net pay | The amount of money left after all deductions have been withheld from gross pay |
| direct depoist | When an employer deposits the employee's paycheck directly into the employee's bank |
| wage | The amount of money paid for a specified quantity of labor |
| commission | Income paid as a percentage of sales made by a salesman |
| payroll card | a prepaid card that is offered to employees as an alternative to paper paychecks or direct depositing their wages |
| gross pay | The total amount of money earned during the pay period before deductions |
| deduction | Money subtracted from gross pay for required taxes, employee insurance, and retirement benefits |
| federal withholding tax | The amount required by law for employers to withhold from earned wages to pay federal income taxes |
| FICA | The tax includes Social Security and Medicare |
| retirement plan | The amount an employee contributed each pay period to a retirement plan |
| tax | A compulsory charge imposed on citizens by local, state, or federal governments |
| progressive tax | The higher the income, the higher the amount of taxes paid |
| W-2 | States the amount of money erned and taxes aid throughout the previous year |
| W-4 | An employee's withholding certificate- the information provided on this form determines the % of gross pay to be withheld for taxes |
| I-9 | Employment Eligibility Verification Form-for employers to verify the eligibility of individuals for employment |
| 1099 form | tax forms that report other sources of income earned during a tax year |
| tip | Money paid by customers to those who provide services |
| bonus | Money paid in addition to base pay, either as a reward or a share of profit |
