Exploring Personal Finance

Unit 4
STUDY
PLAY
Direct Deposit
An arrangement in which a person's pay is electronically transferred directly into the recipient's bank account.
FICA
Federal Insurance Contribution Act; Social Security taxes to provide retirement income and disability benefits.
Form I-9
Employment Eligibility Verification; Documentation must be provided to verify that the person is eligible to work in the United States.
Form W2
wage and tax statement; states the amount of money earned and taxes paid through the previous year
Form W4
withholding allowance certificate; determines the percentage to be withheld for taxes
Gross pay
the total amount of money a person earns
Medicare tax
Nation's health care program for the elderly and the disabled
Net pay
Amount of income left after taxes and deductions have been taken out.
Pay period
start and end dates used to calculate earnings
Paycheck
money given to an employee for work completed
Paycheck stub
the part of a paycheck that allows an employee to see how much has been withheld
Payroll card
prepaid card instead of a paper check or direct deposit
Payroll withholding
the amount of money subtracted from the gross pay for taxes
Personal information
the employee's name address, and social security number
Taxes
a mandatory payment made by an individual or organization to the government for public needs
Withholding tax
the amount required by law for employers to withhold from earned wages to pay taxes
Year-to-date
totals all of the deductions which have been withheld from January 1 to the last day of the pay period