| A | B |
|---|
| paycheck | a form of payment to an employee, traditionally on paper |
| direct deposit | employer deposits employee's paycheck directly into authorized employee's depository institution account |
| payroll card | prepaid card that is offered to employees as alternative to paper paychecks or direct deposit |
| paycheck stub | this part lists paycheck deductions as well as other important information |
| pay period | length of time for which an employee's wages are calculated |
| gross pay | total amount of money earned durng pay period before deductions |
| net pay | amount of money left after all deductions have been taken from gross pay |
| deduction | money subtracted from gross pay for required taxes, employee insurance, and retirement benefits |
| federal withholding tax | amount required by law for employers to withhold from earned wages to pay federal income taxes |
| state withholding tax | percentage deducted from individual's paycheck to assist in funding government agencies within state |
| FICA | Federal Insurance Contributions Act; includes Social Security and Medicare |
| retirement plan | amount an employee contributed each pay period to a retirement plan |
| medical | amount taken from employee's paycheck for medical benefits |
| year-to-date deductions | total of all deductions which have been withheld from individual's paycheck from January 1 to last day of pay period |
| 1099 Forms | tax forms that report other sources of income earned during a tax year, such as interest, dividends, royalties, rent payments, etc. |
| Form I-9 | employment eligibility verification form; used by employers to verify eligibility of individuals for employment |
| Form W-2 | states the amount of money earned and taxes paid throughout the previous year |
| Form W-4 | an employee's withholding certificate; information on this form determines percentage of gross pay withheld for taxes |
| progressive tax | the higher the income, the higher the amount of taxes paid |
| regressive tax | imposes a higher tax rate on those with lower incomes than those with higher incomes |
