| A | B |
|---|
| Personal information | Employee's name, address, and social security |
| Pay period | Length of time an employee's wages are calculated |
| Gross pay | Money earned before deductions |
| Net pay | Money left after all deductions taken from gross pay |
| Deductions | Mandatory taxes, employee benefits, and/or retirement benefits |
| Federal Withholding Tax | Amount employers are required to withhold from wages to pay taxes |
| State Withholding Tax | Percentage deducted from paycheck to help fund state agencies |
| FICA (Federal Insurance Contributions Act) | Nation's retirement program includes Social Security Tax and Medicare |
| Social Security Tax | 6.2% of employee's gross income; employer matches the amount |
| Medicare | For elderly and disabled; based on percentage (1.45%) of gross income |
| Retirement plan | Employee contributes each pay period to a retirement plan. |
| Medical | Amount deducted for medical benefits |
| Year-to-Date | Totals withheld from January 1 to current pay period |
| Paycheck with stub | Allows employee can see the deductions from paycheck; least secure |
| Direct deposit | Employer deposits paycheck into employee's account; more secure |
| Payroll card | Prepaid card; smart cards |
| Regulation E | If card stolen, only liable for $50 |
| Personal Identification Number (PIN) | Password for card; Keep it secret |
| Taxes | Fees paid by citizens for public goods and services |
| Internal Revenue Service (IRS) | Collects taxes and enforces laws |
| Form W-4 | New employees complete to determine abount to be withheld |
| Form I-9 | New employees complete to verify you are eligible to work in U.S. |
