| A | B |
|---|
| payroll | a list of employees and the payments due to each of them for a period of time |
| gross earnings | the total amount of money earned in a pay period |
| salary | a fixed amount of money paid to an employee for each pay period, regardless of the number of hours worked |
| hourly wage | a specific amount paid per hour to an emplyee |
| overtime rate | amount paid (1.5 times) above normal hourly wage |
| commission | amount of money paid to an employee based on a percentage of their sales |
| deductions | various amounts (voluntary or involuntary) subtracted from an employee's gross earnings |
| allowance | an adjustment to the tax withheld from your paycheck |
| Federal Income Tax | taxed paid to federal government based on total income for one year, usually withheld and paid by an employer |
| FICA | Federal Insurance Contributions Act that established the Social Security system |
| Social Security tax | finances retirement, disability and life insurance programs for the government (6.2%) |
| Medicare tax | tax that finances the medicare program (1.45%) |
| net pay | Gross pay minus deductions |
| garnishment | court order to pay debts by automatic deduction from gross earnings |
| Voluntary deductions | payroll deductions selected by the employee |
| Involuntary deductions | payroll deductions mandated by law |
| bi-weekly payroll | pay period where employees are paid every other week |
| semi-monthly payroll | pay period where employees are paid twice a month (1st/15th) |
