| A | B |
|---|
| earned income | the money a person receives for doing a job |
| wage | a set amount of pay for every hour of work |
| salary | a set amount of money paid for a certain period of time |
| piecework | a form of income in which an employee is paid a fixed amount of money for each piece of work done |
| tips | small amounts of money given by customers to services-related workers in return for good service |
| bonus | an extra payment given by an employer to an employee in addition to the workers' regular pay |
| profit sharing | a form of income, usually company stock or bonuses, used to reward employees' hard work and as an incentive to make them more productive |
| deductions | amounts of money subtracted from total pay; can be claimed on Form 1040 to lower a person's tax bill |
| gross pay | the total amount of money earned for a pay period before deductions are subtracted |
| net pay | the gross pay minus taxes and deductions |
| exemption | a set amount of income on which a person does not have to pay tax |
| Form W-4 | the Employers' Withholding Allowance Certificate that shows the employer how much tax to withhold from an employee's paychecks |
| FICA | the amount of social security tax withheld from a paycheck |
| Form W-2 | a wage and tax statement that shows the amount an employee was paid in the previous year. It also shows the income tax and social security tax (FICA) withheld during the year. |
| Form 1040EZ | the simplest form to complete for filing an income tax return |
| Supplemental Security Income (SSI) | a Social Security Administration program that pays benefits to individuals with disabilities who have few possessions or little income |
| Medicare | the health insurance program for people 65 or older, people of any age with permanent kidney failure, and others with certain disabilities |
| Medicaid | the federal government's program that pays for health care services for people who can't afford to pay them |
| unemployment insurance | insurance that provides benefits to workers who hav elost their jobs |
