Shared Flashcard Set

Details

Key Terms
Work Compensation and Forms
33
Business
12th Grade
04/04/2012

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Cards

Term
Wage
Definition
Amount of money paid for a specified quantity of labor; ex: hour
Term
Salary
Definition
Set amount of money paid for a set period of time worked
Term
Commission
Definition
Income paid as a percentage of sales made by a salesman
Term
Tips (Gratuity)
Definition
Money paid by customers to those who provide services
Term
Production
Definition
Compensation paid based on number of pieces or items produced
Term
Bonus
Definition
Money paid in addition to base pay;reward for performance or a share of profit
Term
Paycheck
Definition
A form of payment to an employee
Term
Direct deposit
Definition
An employer deposits the employee’s paycheck directly into the authorized employee’s depository institution account
Term
Payroll card
Definition
A prepaid card that is offered to employees as an alternative to paper paychecks or directly depositing wages into an employee’s depostiory institution
Term
Paycheck stub
Definition
This part lists the paycheck deductions as well as other important information
Term
Pay period
Definition
Length of time for which an employee’s wages are calculated
Term
Gross pay
Definition
Total amount of money earned during the pay period before deductions
Term
Net pay
Definition
Amount of money left after all the deductions have been taken from the gross pay earned in the pay period, aka “take home pay”
Term
Deductions
Definition
Money subtracted from gross pay for required taxes, employee insurance, and retirement benefits; may be voluntary or mandatory
Term
Federal withholding tax
Definition
Amount required by law for employers to withhold (deduct) from earned wages to pay federal income taxes
Term
State withholding tax
Definition
Amount deducted from an individual’s income to assist in funding government agencies within the state
Term
FICA
Definition
Federal Insurance Contributions Act funds 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.
Term
Retirement plan
Definition
Amount an employee contributed each pay period to a retirement plan.
Term
RSDHI
Definition
FICA employee benefits; Retirement, Survivor, Disability, Health Insurance
Term
Medical
Definition
Amount taken from the employee’s paycheck for medical benefits.
Term
Year-to-date deductions
Definition
Total of all deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period
Term
Tax
Definition
Compulsory (mandatory) charge imposed on citizens by local, state, or federal governments
Term
Progressive tax
Definition
The higher the income level, the higher the % amount of taxes paid
Term
Regressive tax
Definition
Impose a higher tax rate on those with lower incomes than those with higher
Term
Work permit
Definition
Form required to be completed (by employee, employer, parent) if employee is minor
Term
Form W-2
Definition
Tax form provided by employer that states the amount of money earned and taxes paid throughout the previous year, used to file form 1040
Term
Form W-4
Definition
An employee’s withholding certificate---the information provided on this form determines the percentage of gross pay to be withheld for federal income taxes
Term
Form I-9
Definition
Employment Eligibility Verification Form---information on this form is for employers to verify the eligibility of non-citizen individuals for employment
Term
1099 Forms
Definition
Tax forms reporting other sources of income earned during a tax year: INT, DIV, MISC
Term
1099-INT
Definition
Tax form reporting Interest income on savings and/or investment accounts during the previous year
Term
1099-DIV
Definition
Tax form reporting Dividends earned on investments during the previous year
Term
1099-MISC
Definition
Tax form reporting Income earned from self-employment, royalties, rent payments, unemployment compensation, capital gains, & other sources
Term
Form 1040
Definition
Individual tax reporting form filed by April 15th for previous calendar year
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