Business: Income

Question 1

What is income?

Answer 1

Money received by a person or household.

Question 2

What are the sources of income?

Answer 2

Wages & salaries, pensions, child benefit.

Question 3

What are wages and salaries?

Answer 3

Income earned as a reward for work.

Question 4

What is a pension?

Answer 4

Income paid to people who have retired.

Question 5

What is child benefit?

Answer 5

A payment to parents/guardians of children under 18 or in full-time education.

Question 6

What is Jobseeker’s Benefit?

Answer 6

Payment made to unemployed people.

Question 7

What is interest on savings?

Answer 7

Money paid by banks to reward saving.

Question 8

What is windfall income?

Answer 8

Unexpected income, like a lottery win.

Question 9

What is benefit in kind (BIK)?

Answer 9

Non-cash income like a company car.

Question 10

What is regular income?

Answer 10

Income received at fixed intervals (e.g. monthly).

Question 11

What is irregular income?

Answer 11

Income received now and then, not predictable.

Question 12

What are examples of regular income?

Answer 12

Salary, pension.

Question 13

What are examples of irregular income?

Answer 13

Bonuses, windfall income.

Question 14

What is salary?

Answer 14

A fixed yearly payment, usually paid monthly.

Question 15

What is wage?

Answer 15

Payment based on hours worked or tasks done.

Question 16

What is time rate pay?

Answer 16

Pay based on hours worked (e.g. €15/hour).

Question 17

What is overtime?

Answer 17

Extra pay for working beyond normal hours.

Question 18

What is piece rate pay?

Answer 18

Pay based on items made or completed.

Question 19

What is commission?

Answer 19

Pay based on sales made.

Question 20

What is a bonus payment?

Answer 20

Extra pay for good performance or meeting targets.

Question 21

What is basic pay?

Answer 21

Pay before overtime or bonuses.

Question 22

How to calculate gross pay?

Answer 22

Basic Pay + Overtime + Bonuses + Commission.

Question 23

What is gross pay?

Answer 23

Total pay before deductions.

Question 24

How to calculate net pay?

Answer 24

Net Pay = Gross Pay – Deductions.

Question 25

What is net pay?

Answer 25

Pay after all deductions — 'take home pay.'

Question 26

What are statutory deductions?

Answer 26

Deductions that are required by law.

Question 27

What is PAYE?

Answer 27

Tax paid as you earn (monthly or weekly).

Question 28

What is USC?

Answer 28

Tax for government funding, paid if income is over a certain amount.

Question 29

What is PRSI?

Answer 29

Insurance that allows access to benefits like Jobseeker’s.

Question 30

What are voluntary deductions?

Answer 30

Optional payments like health insurance.

Question 31

What is a pay slip?

Answer 31

A document showing income and deductions.

Question 32

What is disposable income?

Answer 32

Income after paying taxes (Gross – Statutory Deductions).

Question 33

What is discretionary income?

Answer 33

Money left after taxes and essential spending.

Question 34

What is minimum wage?

Answer 34

The lowest hourly rate an employer must pay an employee by law, (13.50).

Question 35

What is living wage?

Answer 35

The lowest hourly wage an employee needs to earn to have a basic but acceptable standard of living, (14.75).