| A | B |
|---|
| Earned Income | Wages, Tips, Commission, Bonuses and other W-2 Income |
| Unearned Income | Income outside of a job, not found on a pay stub |
| Tips | Typically 15-20% gratuity paid by customer |
| Commission | Type of Income for Sales Jobs |
| Hourly Wage | Paid by Employer by the Hour |
| Salary | An annual rate of pay- typically for an exempt employee |
| Overtime | Pay over and above a 40 hour work week-1.5X regular pay |
| Bonus | Incentive Pay |
| Gross Pay | Total of wages, tips, commission, etc. Before Taxes |
| Net Pay | Gross Pay Minus Taxes and Deductions |
| Human Capital | Improvement in labor created by knowledge and skills |
| Mandatory Payroll Deductions | Taxes, Social Security, Medicare |
| Voluntary Payroll Deductions | Withholding for Savings, Health Plans, Retirement, etc. |
| Examples of Benefits | Subsidized Healthcare, Retirement Contributions, Sick Pay, Vacation, Education Reimbursement |
