| A | B |
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| pay period | A length of time for which an employee’s wages are calculated. May be weekly, bi-weekly, or monthly. |
| net income | The amount paid after all the deductions are subtracted from your wages (take home pay) |
| wages | money paid regularly to an employee in exchange for labor or services |
| medicare | Hospital and medical insurance for the elderly , disabled and low-income households |
| What two deductions are withheld under the FICA heading? | Social Security and Medicare |
| What two forms does every person complete when they begin a new job? | Form W-4 and I-9 |
| What determines the amount of taxes withheld from an employee’s paycheck? | The information supplied by the employee on the Form W-4 and the amount of earnings. |
| Give two examples of documentation and identification required to complete the Form I-9. | Birth certificate, driver’s license, passport, and Social Security card |
| Three ways an employee may be paid | A paycheck, direct deposit of paycheck, payroll card |
| tax withholding | The amount of tax required by law to be withheld from wages earned |
| pay check stub | the second part of a paycheck with the written re cord of the withheld deductions |
| gross income | The total amount of money earned in a pay period before deductions |
| payroll withholding | Money subtracted or deducted from gross income earned. |
| three things tax dollars pay for | Roads ▪ Police ▪ Fire/Emergency services ▪ Government agencies ▪ Schools |
| How is gross income calculated if earning an hourly wage? | By multiplying the number of hours work ed in a pay period by the hourly wage. |
| Why you need to complete an I-9 form | To determine your eligibility to be hired in the United States |
| earnings | money received as pay; wages. |
| Year-to-date (YTD) | Totals the payroll withholdings that have been deducted from the paycheck from January 1 to the last day of the pay period. |
| Personal Information | The employee’s full name, address, and Social Security number or Employee Identification Number. |
| 30% | Approximate percentage paid in taxes per paycheck |
| Form I-9 | Employment Eligibility Verification form |
| Form W-2 | Wage and Tax Statement. |
| FICA | Federal Insurance Contribution Act |
| Social Security | Nation’s retirement program |
| employment | an occupation for wages or a salary; work; job. |
| IRS | a government agency which collects taxes for the federal government. It is a law for employers to withhold taxes from wages. |
| dependent | A person who relies on the taxpayer for financial support like a child or non-working adult. |
| Direct Deposit | employers deposit paycheck directly into the employee’s depository institution account. |
