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Income & Taxes
Forms Of Income
26
Finance
9th Grade
05/07/2012

Additional Finance Flashcards

 


 

Cards

Term
Earned income
Definition
The income you receive from employment.
Term
Wage
Definition
Payment for work and is usually computed on an hourly, daily, or piecework basis.
Term
Minimum wage
Definition
The lowest hourly wage employers can pay most workers by law.
Term
Piecework income
Definition
Is a wage based on a rate per unit of work completed .
Term
Salary
Definition
Is payment for work that is expressed as an annual figure.
Term
Commission
Definition
Is income paid as a percentage of sales made by a salesperson.
Term
Tip
Definition
Or gratuity, is money paid for service beyond what is required.
Term
Bonus
Definition
Is money added to an employee's base pay.
Term
Compensation
Definition
Is the payment and benefits received for work performed.
Term
Employee benefit
Definition
Or fringe benefit, is a form of nonmonetary compensation received in addition to a wage or salary.
Term
Gross income
Definition
Is wages or salary before payroll deductions.
Term
Payroll deduction
Definition
Is a subtraction from your gross income.
Term
FICA (Federal Insurance Contributions Act)
Definition
The law that requires the collection of social security payroll taxes.
Term
Net-Income
Definition
Or take-home pay, is your gross income (plus bonuses, if you get them), minus payroll deductions.
Term
Unearned income
Definition
Is earnings from sources other than work.
Term
Interest
Definition
Is paid by financial institutions, businesses, and government in exchange for the use of customers' money.
Term
Entitlement
Definition
Is a government payment or benefit promised by law to eligible citizens.
Term
Social security
Definition
Is a federal program that provides income when earnings are reduced or stopped because of retirement, serious illness or injury, or death.
Term
Medicare
Definition
Is a federal program that pays for certain health care expenses for older citizens and othersd with disabilities.
Term
Disability
Definition
Is a limitation that affects a person's ability to function in major life activities
Term
Medicaid
Definition
Is a government program that pays certain health care costs for eligible low- income individuals and families.
Term
Form W-4
Definition
The employee's withholding allowance certificate that tells the employer how much tax to withhold from an employee's paycheck.
Term
Form W-2
Definition
A wage and tax statement that states the amount an employee was paid in the previous year. It also gives the amounts of income, social security, and medicare taxes withheld from an employee's income during the year.
Term
Tax deduction
Definition
Is an expense that can be subtracted from taxable income.
Term
Exemption
Definition
Is a tax benefit that reduces the amount of income that is taxed.
Term
Tax credit
Definition
Is an amount you can subtract from the taxes you owe, if you are eligible.
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