Term
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Definition
| The length of time for which an employee's wages are calculated usually weekly, bi-weekly, semi-monthly, or monthly. |
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Term
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Definition
| The total mount of money earned during the pay period before deductions. |
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Term
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Definition
| The amount of money left after all deductions have been withheld from the gross pay earned in a pay period. |
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Term
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Definition
| The amount of money subtracted or deducted from the gross pay for mandatory taxes, employee-sponsored medical benefits, and/or retirement benefits. |
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Term
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Definition
| The amount required by federal law for employers to withhold from earned wages to pay taxes. This represents the largest deduction withheld from an employee's gross income. The amount withheld depends upon two things: the amount of money earned and the information provided on the Form W-4. |
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Term
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Definition
| The percentage deducted from an individual's paycheck to assist in funding government agencies within the state. The percentage of deduction depends upon the amount of gross income the employee has earned and other information from the employee's W-4. |
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Term
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Definition
| Totals all of the deductions which have been withheld from an individual's paycheck from January 1 to the last day of the pay period indicated on the paycheck stub. |
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Term
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Definition
| This tax includes two separate taxes: Social Security and Medicare. |
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Term
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Definition
| The nation's retirement program. This tax helps provide retirement income for elderly and pays disability benefits. This tax is based upon a percentage (6.2%) of the employee's gross income. The employer matches the contribution made by the employee. |
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Term
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Definition
| The nation's health care program for the elderly and disabled. This tax provides hosiptal and medical insurance to those who qualify. This tax is based upon a percentage (1.45%) of the employee's gross income. |
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Term
| Medical Insurance Deduction |
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Definition
| The amount taken from the employee's paycheck for medical benefits. This occurs when the employer has a medical plan for employees, but does not pay full coverage for his/her benefits. |
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Term
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Definition
| Also known as the Employee's Withholding Allowance Certificate. The information provided on this form determines the percentage of gross income to be withheld for taxes; both federally and state. |
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Term
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Definition
| The Employment Eligibility Verification Form used to verify the eligibility of individuals and to avoid hiring undocument workers. Employees must provide documentation which establishes identity and employment eligibility; examples include driver's license, passport, social security card, and birth certificate. |
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Term
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Definition
| Forms of employee compensation in addition to pay; an advantage of these are that most are not taxed. |
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Term
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Definition
| Income that will be taxed at a later time. |
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Term
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Definition
| Income not subject to tax at all |
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Term
| Benefits Required by Law by employers |
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Definition
| Unemployment compensation; workers' compensation; and social security |
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Term
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Definition
Employee makes contribution to his/her own account and employer may then also contribute equally or a percentage. The benefit is that the employee is not taxed on this contribution for their retirement until they draw from it. Penalty if you draw early. |
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Term
| Flexible Spending Plan (Flex Plan) |
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Definition
Allows employee to shelter income from taxes and set the amount aside for medical expenses NOT covered by insurance and child care. If not used, you lose it.
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Term
| Health Savings Account (HSA) |
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Definition
| Allows employee to shelter income from taxes and set the amount aside for medical expenses NOT covered by insurance. If not used, it rolls over to the next year. |
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