Personal Finance obj 4.01
Personal Finance obj 4.01
Terms in this set (30)
the amount of money paid for a specific quantity of labor
a set amount of money paid for a set period of time worked
Income paid as a percentage of sales made by a salesman
money paid by customers to those who provide services
money paid in addition to base pay, either as a reward for performance or as a share of profits
a form of payment to an employee
an employer deposits the employee's paycheck directly into the authorized employee's depository institution account
a prepaid card that is offered to employees as an alternative to paper paychecks or directly depositing wages into an employee's depository institution
this part lists the paycheck deductions as well as other important information.
the length of time for which an employee's wages are calculated.
the total amount of money earned during the pay period before deductions
the amount of money left after all deductions have been taken from the gross pay earned in the pay period
money subtracted from gross pay for required taxes, employee insurance, and retirement benefits
federal withholding tax
the amount required by law for employers to withhold from earned wages to pay federal income taxes.
state withholding tax
the percentage deducted from an employee's paycheck to assist in funding government agencies within the sate.
Federal Insurance Contributions Act. This tax includes 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.
The amount an employee contributed each pay period to a retirement plan.
the amount taken from the employee's paycheck for medical benefits.
the total of all deductions which have been withheld from an individual's paycheck from January 1 to the last day of the pay period.
a compulsory charge imposed on citizens by local, state, or federal governments
the higher the income, the higher the amount of taxes paid
When a higher tax rate is imposed on those with lower incomes than those with higher
States the amount of money earned and taxes paid throughout the previous year.
An employee's withholding certificate--the information provided on this from determines the percentage of gross pay to be withheld for taxes
Employment Eligibility Verification Form--the information on this form is for employers to verifiy the eligibility of individuals for employment
Tax forms that report other sources of income earned during a tax year. Examples 1099-INT, 1099-DIV, and 1099-MISC
Interest income earned on savings and/or investment accounts during the previous year
Dividends earned on investments during the previous year.
Income earned from self-employment, royalties, rent payments, unemployment compensation, and other services
Where an employee has his/her checking or saving account