| A | B |
|---|
| Tax | A financial charge paid to the government for services. |
| Gross Income | Total of an employee's regular remuneration including allowances, overtime pay, commissions, and bonuses, etc., before any deductions are made. |
| Net Income | For an individual, gross income minus taxes, allowances, and deductions. An individual's net income is used to determine how much income tax is owed. |
| Property Tax | Local tax paid to towns or cities on item that you own like houses and cars. |
| Overtime Pay | Over 40 hours worked and paid at time and a half. |
| FICA | The federal law which requires employers to withhold a portion of employee wages and pay them to the government trust fund which provides retirement benefits. An acronym for Federal Insurance Contributions Act. More commonly known as social security. |
| Medicare | Part of FICA that provides health insurance at age 65. |
| Federal Tax Brackets | Income tax groupings specified by the Internal Revenue Service (IRS) that determine at what rate an individual, trust, or corporation's annual income will be subject to federal income tax. |
| Federal Income Tax | An income tax is a tax levied on the income of individuals or business (corporations or other legal entities). Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. |
| Graduated (Progressive) Income Tax System | A tax with a rate that increases as the amount to be taxed increases. |
| Tax Credit | An amount that the government allows you to directly deduct from the amount of taxes you owe. |
| Gross Pay | Total money earned from working. What you make before any deductions. |
| Net Pay | The amount left over after deductions from the gross salary. the remaining amount after deductions |
| Flat Tax | A type of tax that taxes you at one constant rate. |
| W-4 | Form filled out and given to the employer when you start a job. |
| 1040 | The tax form use to file your taxes. |
| Regular Pay | Is the hourly rate up to 40 hours. |
| Sales Tax | A consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. |
| Taxable income | The end amount of money earned that is used to determine how much tax you have to pay. |
| W-2 | Form sent to employee from employer that shows yearly income and what you paid in taxes for the year. |
