| A | B |
|---|
| minimum wage | lowest hourly rate of pay permitted by law |
| overtime | work or pay beyond 40 hours a week |
| vested | when you have worked long enough at a company to take part in a retirement plan when leaving the company |
| direct deposit | pay that goes directly to your bank account rather than cash in your hand |
| gross pay | amount of pay BEFORE taxes or deductions |
| deduction | anything subtracted from gross pay |
| net pay | pay after all deductions are made; take-home pay |
| allowances | on the W-4, factors that affect the amount of income tax the employer withholds; ex=number of children |
| dependent | someone like a spouse or child who is supported by a tax payer's income |
| tax deduction | any expense which reduces an income before taxation; ex=medical expenses |
| itemized deductions | on a tax return, listing of amounts actually spent on tax-deductivle expenses during the year |
| standard deduction | opposite of an itemized deduction; a set amount that the IRS allows without the need to list actual expenses |
| tax credit | child care, tuition; amount subtracted on a tax return directly from the total income |
| social security | federal gov't insurance program paid for with taxes |
| tax | required payment to local, state or fed gov't for public use |
| revenue | money collected through taxes by local, state or federal gov't |
| proportional tax | takes the SAME % out of everyone's taxes |
| progressive | takes higher % of income from high earners than for low earners |
| regressive tax | takes larger 5 of LOW income earners than high earners |
| salary | regular wage or set amount of money earned |
| wages | employee earnings whether paid by hour, day, or item; not necessarily regular payment |
| piecework | work for wages based on the number of items or pieces done |
| commission | fixed percentage that a worker gets in exchange for making a sale, beyond weekly wages |
| tips | money given by customers for a service; ex=give 10-15% to a waitress of food ordered |
| exempt, exemption | excused |
| W-2 | form that employer sends you before Jan 31 listing your total earnings for the year |
| IRS | internal revenue service (federal) |
| filing status | when filing a tax return, whether you are single, married, or married filing together |
| jointly | when married, spouses are filing together |
| contribution | amount of money paid |
| subject to | required |
| audit | when the IRS requires that you prove the truth of your tax form |
| liability | legal responsibility to pay |
| disability | inability to work due to a physical or mental problem |
| penalty | amount you must pay as a punishment |
| eligible | qualified, able to do legally |
| interest income | money you get from your bank for using your money in your account |
| refund | over-payment to the government which you get back from the government |
| W-4 | form before you begin to work that tells number of dependents |
| excise tax | everyone pays the same amount on a purchase |
| property tax | home owners pay this tax based on the value of their house |
| Tax liability | actual amount you have to pay in taxes after all adjustments and refunds have been made |
| audited | examined by the IRS |
