| A | B |
|---|
| Employee | A person who is hired and works under the control and direction of the employer. |
| Form W-4 | A form used to claim exemption allowances. |
| Federal Unemployment Taxes | Taxes levied by the federal government against employers to benefit unemployed workers. |
| Hourly Rate Basis | A method of paying employees according to a stated rate per hour. |
| Medicare Tax | A tax levied on employees and employers to provide medical care for the employee and employee's spouse after each has reached age 65. |
| Salary basis | A method of paying employees according to an agreed upon amount for each week or month. |
| Social Security Tax | A tax imposed by the Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability benefits. |
| State Unemployment Taxes | Taxes levied by a state government against employers to benefit unemployed workers. |
| Tax exempt wages | Earnings in excess of the base amount set by the Social Security Act |
| Time and a half | Rate of pay for an employee's work in excess of 40 hours a week |
| Worker's compensation insurance | Insurance that protects employees against losses from job-related injuries or illnesses. |
| Form 940 | Preprinted government form used by the employer to report unemployment taxes for the calendar year. |
| Experience rating system | A system that rewards an employer for maintaining steady employment conditions by reducing the firm's state unemployment tax rate. |
