Terms 2

Question 0

Overtime pay

Answer 0

1 1/2 times regular pay for hours above 40 hours per week.

Question 1

Minimum wage

Answer 1

The lowest pay rate allowed by law for each hour worked.

Question 2

Salaried

Answer 2

• do not keep time cards
• have more flexibility in the time they work
• often work more than 40 hours week/no overtime

Question 3

Tips

Answer 3

Money or gift given to a person that is subject to federal taxes.

Question 4

Commission

Answer 4

A percentage of a sale paid to a salesperson instead of or in addition or salary or wages.

Question 5

Self-employment

Answer 5

An entrepreneur takes risk of being self-employed or owning a business.

Question 6

Advantages

Answer 6

You can make decisions about how to work or run the business.
You can keep profits from your work or the business.

Question 7

Disadvantages

Answer 7

Involves high risk.

Often requires long work hours.

Question 8

Profits

Answer 8

The amount of money left after all costs are deducted from the income of a business.

Question 9

Benefits

Answer 9

Form of pay or other than salary or wages.

Question 10

Pay without work

Answer 10

Refers to times when am employee who is not working will be paid. (Ex. Vacation, sick days, paid holiday)

Question 11

Premium

Answer 11

Price we pay for insurance.

Question 12

Short term disability

Answer 12

Coverage for up to two years

Question 13

Long term disability

Answer 13

Coverage for longer than two years and up to retirement

Question 14

401K

Answer 14

Allows employees to put aside money that is not subject to federal income tax at a time is earned; will be taxed later and some employers match contributions.

Question 15

Pension plan

Answer 15

Retirement account paid for entirely by employer; typically must be w/ company for certain # of years

Question 16

Profit sharing plan

Answer 16

Means when company does well, employees get a share of profits.

Question 17

Stock option plan

Answer 17

Allow employees to buy stock in the company at a reduced price.

Question 18

Health flex spending

Answer 18

Allows employee to set aside $ to pay for qualified expenses that is not subject to federal income tax.

Question 19

Educational reimbursement

Answer 19

Employers may provide pay back for money spend on training and education.

Question 20

Perks

Answer 20

Other types of benefits such as prime parking space, office with a view, account expenses, or car.

Question 21

Insurance available

Answer 21

Health, life and disability insurance.

Question 22

Unearned income

Answer 22

Is money received from sources other than working in a job.

Question 23

Dividend

Answer 23

Money shared with a stockholder when a corporation makes profits.

Question 24

Transfer payment

Answer 24

Money and benefits received from local, state, or federal governments.

Question 25

In-kind transfer payment

Answer 25

Food stamps, rent, and Medicaid.

Question 26

In-cash transfer payment

Answer 26

Checks, debits, or other direct payments.

Question 27

Taxes

Answer 27

Required payments to a government.

Question 28

Costs of paying taxes

Answer 28

Paying taxes reduces disposable income. Less money is left to spend or save. Lower spending may affect the economy.

Question 29

Use taxes

Answer 29

Are taxes paid by people who use certain goods or services such as visiting parks.

Question 30

Excise taxes

Answer 30

Are charged on the purchase of specific goods such as motor fuel, cigarettes.

Question 31

Luxury taxes

Answer 31

Are charged on products not considered essential for a normal standard of living like an expensive car.