| A | B |
|---|
| Wage | Amount of money paid for a specified quantity of labor; ex: hour |
| Salary | Set amount of money paid for a set period of time worked |
| Commission | Income paid as a percentage of sales made by a salesman |
| Tips (Gratuity) | Money paid by customers to those who provide services |
| Production | Compensation paid based on number of pieces or items produced |
| Bonus | Money paid in addition to base pay;reward for performance or a share of profit |
| Paycheck | A form of payment to an employee |
| Direct deposit | An employer deposits the employee’s paycheck directly into the authorized employee’s depository institution account |
| Payroll card | A prepaid card that is offered to employees as an alternative to paper paychecks or directly depositing wages into an employee’s depostiory institution |
| Paycheck stub | This part lists the 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 during the pay period before deductions |
| Net pay | Amount of money left after all the deductions have been taken from the gross pay earned in the pay period, aka “take home pay” |
| Deductions | Money subtracted from gross pay for required taxes, employee insurance, and retirement benefits; may be voluntary or mandatory |
| Federal withholding tax | Amount required by law for employers to withhold (deduct) from earned wages to pay federal income taxes |
| State withholding tax | Amount deducted from an individual’s income to assist in funding government agencies within the state |
| FICA | Federal Insurance Contributions Act funds Social Security and Medicare. Social Security taxes are based on a 6.2 percentage of the employee’s gross income. Medicare is 1.45% of gross income. |
| Retirement plan | Amount an employee contributed each pay period to a retirement plan. |
| RSDHI | FICA employee benefits; Retirement, Survivor, Disability, Health Insurance |
| Medical | Amount taken from the employee’s paycheck for medical benefits. |
| Year-to-date deductions | Total of all deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period |
| Tax | Compulsory (mandatory) charge imposed on citizens by local, state, or federal governments |
| Progressive tax | The higher the income level, the higher the % amount of taxes paid |
| Regressive tax | Impose a higher tax rate on those with lower incomes than those with higher |
| Work permit | Form required to be completed (by employee, employer, parent) if employee is minor |
| Form W-2 | Tax form provided by employer that states the amount of money earned and taxes paid throughout the previous year, used to file form 1040 |
| Form W-4 | An employee’s withholding certificate---the information provided on this form determines the percentage of gross pay to be withheld for federal income taxes |
| Form I-9 | Employment Eligibility Verification Form---information on this form is for employers to verify the eligibility of non-citizen individuals for employment |
| 1099 Forms | Tax forms reporting other sources of income earned during a tax year: INT, DIV, MISC |
| 1099-INT | Tax form reporting Interest income on savings and/or investment accounts during the previous year |
| 1099-DIV | Tax form reporting Dividends earned on investments during the previous year |
| 1099-MISC | Tax form reporting Income earned from self-employment, royalties, rent payments, unemployment compensation, capital gains, & other sources |
| Form 1040 | Individual tax reporting form filed by April 15th for previous calendar year |
