Topic 11 Wages and Employment Flashcards
What are wages?
When an employee is paid for the number of hours per week that they work, this is known as wages.
What is a salary?
When an employee receives a fixed amount of money per year, this is called a salary.
What is overtime?
Overtime refers to extra hours that a person works after they have completed their normal working time.
What is basic pay?
Basic pay is the amount you earn for a normal working week.
What is time rate?
Paying an employee for the number of hours they work is called time rate.
What is piece rate?
Paying an employee for the amount of work they do is called piece rate.
What are commissions?
Paying an employee a percentage of the value of the goods or services they sell during a week or month is called commission.
What is gross pay?
Gross pay is the total pay before any deductions are made.
What is net pay?
Net Pay is gross pay after deductions have been taken away.
What are statutory deductions and list 3 of them?
Statutory deductions are deductions that the law says must be taken from the pay of every employee. The three statutory deductions in Ireland are:
• PAYE
• PRSI
• USC
What are voluntary deductions and list 3 of them?
Non statutory or voluntary deductions are deductions that am employee chooses to pay if they wish to. Examples of non-statutory deductions include:
• Trade Union subscriptions
• Private pension payments
• Medical Insurance
What are tax credits?
Tax credits are the portion of your income that is tax free.
What is the standard rate cut-off point?
The standard rate cut-off point is defined as the income level at which the employee changes from the standard rate of tax (20%) to the higher rate of tax (40%).
