Terms in this set (21)
A twelve-month period beginning on January 1 and ending on December 31 of the same year.
Current Tax Payment Act
(Income Tax Withholding) An act to require employers to withhold and pay to the U.S. Treasury employee funds.
One who works for compensation under the direction and control of the employer.
Employee's individual earnings record
A supplementary record for each employee showing personal payroll data and yearly cumulative earnings, deductions, and net pay.
Employee's Withholding Allowance Certificate (Form W-4)
A form that specifies the number of allowances claimed by each employee and gives the employer the authority to withhold money for an employee's federal income taxes.
An amount of an employee's annual earnings not subject to income tax for the taxpayer, taxpayer's spouse, and dependents (usually children).
Fair Labor Standards Act
The act of 1938 that provides for minimum standards for wages and overtime, including provisions related to child labor and equal pay for equal work.
Social Security taxes plus Medicare taxes, paid by both employee and employer under the provisions of the Federal Insurance Contributions Act. The proceeds are used to pay old-age and disability pensions and to fund the Medicare program.
The total amount of an employee's pay before any deductions.
Someone who is engaged for a definite job or service, and who may choose his or her own means of doing the work. This person is not an employee of the firm for which the service is provided.
Federal government taxes levied on employees and employers; proceeds are used for medical insurance for eligible people age 65 or over.
Gross pay minus deductions. Also called take-home pay.
Payroll bank account
A special checking account used to pay a company's employees.
A manual or computerized schedule prepared for each payroll period listing the earnings, deductions, and net pay for each employee.
Employee deductions that are not subject to income tax. The deductions include medical insurance premiums and medical and dependent care expenses under a flexible spending plan.
Social Security Act of 1935
An act to provide for worker retirement funding through deductions from their wages and matching amounts from the employers.
Social Security taxes
Federal government taxes levied on employees and employers; proceeds are used for old-age pensions and disability benefits.
The amount of an employee's earnings subject to a tax.
Wage-bracket tax tables
A chart providing the amounts to be deducted for income taxes based on amount of earnings, marital status, and number of allowances claimed.
An amount of an employee's annual earnings not subject to income tax.
Workers' compensation laws
Laws that protect employees and dependents against losses due to death or injury incurred on the job.