Chapter 2 Flashcards
(17 cards)
Cafeteria plan
A benefits package that allows employees to choose some options and reject others
Benefits
Forms of pay for a job other than salary or wages, such as vacation and holidays
Commission
Income based on completing a sale
Disposable income
Money that is left to save of spend after paying taxes
Dividend
Money paid to stockholders of a corporation
Entrepreneur
A person who takes the risk of owning a business
Excise tax
Tax on the sale of certain goods such as tobacco or on activities such as highway use by heavy trucks
Minimum wage
Lowest pay rate allowed by law for each hour of work
Overtime pay
At least 1.5 times the regular rate of pay
Paid holidays
Days you are paid for but you do not actually work, such as New Year’s Day
Personal leave
Days you are paid for when you are absent for personal reasons
Profit
The amount left after all costs are deducted from the income of a business
Sick leave
Days you are paid for even though you are sick and do not work
Tax
A required payment for the support of a government
Tip
Money earned based on quality of service
Transfer payments
Money or benefits received from government without working for them when they are received
Unearned income
Money received from sources other than working at a job
