| A | B |
|---|
| wage | The amount of money paid for a specified quantity of labor. |
| salary | A set amount of money paid for a set period of time worked. |
| commission | Income paid as a percentage of sales made by a salesman |
| tip | Money paid by customers to those who provide services. |
| bonus | Money paid in addition to base pay, either as a reward for performance or as a share of profit. |
| paycheck | A form of payment to an employee |
| direct deposit | An employer deposits the employee’s paycheck dirctly into the authorized employee’s depository institution account. |
| payroll card | A prepaid card that is offered to employees as an alternative to paper paychecks or directly depositing wages into an employee’s depostiory institution |
| paycheck stub | This part lists the paycheck deductions as well as other important information. |
| pay period | The length of time for which an employee’s wages are calculated. |
| gross pay | The total amount of money earned during the pay period before deductions. |
| net pay | The amount of money left after all the deductions have been taken from the gross pay earned in the pay period. |
| 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. |
| state withholding tax | The percentage deducted from an individual’s paycheck to assist in funding government agencies within the state. |
| FICA | Federal Insurance Contributions Act. This tax includes Social Security and Medicare. Social Security taxes are based on a 6.2 percentage of the employee’s gross income. Medicare is 1.45% of gross income. |
| retirement plan | The amount an employee contributed each pay period to a retirement plan. |
| medical | The amount taken from the employee’s paycheck for medical benefits. |
| year-to-date deductions | The total of all deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period |
| 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 |
| regressive tax | They impose a higher tax rate on those with lower incomes than those with higher |
| Form W-2 | States the amount of money earned and taxes paid throughout the previous year |
| Form W-4 | An employee’s withholding certificate---the information provided on this form determines the percentage of gross pay to be withheld for taxes |
| Form I-9 | Employment Eligibility Verification Form---the information on this form is for employers to verify the eligibility of individuals for employment. |
| 1099 -INT | Interest income earned on savings and/or investment accounts during the previous year. |
| 1099-DIV | Dividends earned on investments during the previous year. |
| 1099-MISC | Income earned from self-employment, royalties, rent payments, unemployment compensation, and other sources. |
