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| Tax | To impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. |
| Gross Income | Total of an employee's regular remuneration including allowances, overtime pay, commissions, and bonuses, etc., before any deductions are made. |
| Net Income | For an individual, gross income minus taxes, allowances, and deductions. An individual's net income is used to determine how much income tax is owed. |
| Property Tax | Levy on the value of property, an ad valorem tax that the owner is required to pay. Property tax can be defined as a "tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property." multiply the assessed value of the property by the mill rate and then divide by 1,000. multiply the assessed value of the property by the mill rate and then divide by 1,000. |
| Income Tax | Annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends, interest, rents). |
| State Tax | Taxes imposed by a specific state on individuals that inhabit, shop, or do business within its jurisdictions. These taxes may be assessed in the form of the deductions from wages or additional fees billed to the individual or business. |
| FICA | The federal law which requires employers to withhold a portion of employee wages and pay them to the government trust fund which provides retirement benefits. An acronym for Federal Insurance Contributions Act. More commonly known as social security. |
| Medicare | A federal program that pays for certain health care expenses for people aged 65 or older. Enrolled individuals must pay deductibles and co-payments, but much of their medical costs are covered by the program. |
| Local Taxes | An additional tax on top of federal and state taxes, usually collected in the form of property taxes. |
| Federal Taxes | Comparison of tax rates around the world is difficult and somewhat subjective. Tax laws in most countries are extremely complex, and tax burden falls differently on different groups in each country and sub-national unit. The lists below give an indication by rank of some raw indicators. |
| State Taxes | Is an income tax in the United States that is levied by each state. |
| Federal Tax Brackets | Income tax groupings specified by the Internal Revenue Service (IRS) that determine at what rate an individual, trust, or corporation's annual income will be subject to federal income tax. |
| Federal Income Tax | An income tax is a tax levied on the income of individuals or business (corporations or other legal entities). Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. |
| Graduated (Progressive) Income Tax System | A tax with a rate that increases as the amount to be taxed increases. |
| Personal Tax Liability | Obligation for which an individual is responsible and which may be satisfied out of his or her assets. |
| Gross Pay | What you make before any deductions. |
| Net Pay | The amount left over after deductions from the gross salary. the remaining amount after deductions |
| Flat Tax | Fixed rate tax; that is, the tax amount is independent of the sum or value it is charged on. |
| W-4 | A tax form prepared by an employee for an employer indicating the employee's exemptions and Social Security number, and enabling the employer to determine the amount of taxes to be withheld for the employee. |
| 1040EZ | Simplified IRS tax form which some individuals can file instead of the 1040 form. |
| Personal Tax | Tax paid on one's personal income as distinct from the tax paid on the firm's earnings. In an incorporated firm, the owners (shareholders) pay taxes on both their income (salary or dividend from the firm) firm's income (profits). In partnerships and sole-ownerships, the tax is paid only once on the firm's profits. |
| Regular Pay | Is the hourly rate or monthly salary paid for a job |
| Sales Tax | A consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. |
| Personal Tax Liability | The basics of calculating personal tax liability can be broken down into four sums: total income, adjusted gross income, taxable income and total tax. |
| Exemptions | Personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income under some systems. |
| Payperiod | The regular schedule by which employers pay employees. (weekly, Bi-weekly, Semi-monthly, Monthly) |
| Taxpayer | A person who pays a tax to national, state, county or municipal governments. |
| Excise Tax | Taxes paid when purchases are made on a specific good, such as gasoline, and are often included in the price of the product rather than being listed separately. |
