Employment & Taxes Flashcards
What is a salary?
A fixed amount you get paid for the whole year, divided by the number of paychecks in the year.
What are wages?
What you earn at work if you are paid hourly. (Hours worked times dollars per hour)
What is entrepreneurship?
Owning your own business, including assuming the financial risks.
What is a commission (as a form of income)?
Money you earn as a percentage of a sale
What is withholding?
Money your employer keeps out of your paycheck to pay federal and state taxes.
What is TOTAL GROSS pay?
The amount you earned before taxes or other deductions are taken out of your paycheck.
What is net pay?
Also known as your “take-home pay” or your “after-tax” pay. The amount that is actually on your paycheck.
What is FICA?
Payroll taxes which pay for Medicare and Social Security.
What is Social Security?
Income for retired people, or some disabled people or survivors.
What is Medicare?
Health insurance for people over age 65.
What is a pay rate?
The dollars per hour you get paid.
What is a pay period?
The number of days you are getting paid for on one paycheck.
