Paycheck Basics Vocabulary- Business & Marketing Final
Three examples of Payroll Withholdings?
Federal, State, and FICA
What is the equation for Net Income?
Gross pay minus payroll withholding equals Net Income
Medicare
Health care program for the elderly and disabled
Social Security
Helps provide retirement income for the elderly and pays disability benefits
Paycheck con
The least secure method of payment
Pay Period
The length of time for which an employee's wages are calculated
Gross Income
The total amount of money earned before payroll withholdings
Form W-2
The wage and tax statement. States the amount of money earned and taxes paid throughout the previous year.
Form I-9
This form is used to prove citizenship
Payroll Card
This is an electronic card that carries the wages earned on it.
Take Home Pay
This is net income and is the amount an employee receives after deductions
What is the purpose of a W-4?
To determine the amount of money withheld for taxes
What is the purpose of an I-9?
To prove citizenship
Direct Deposit con
No direct handling
Payroll Card pro
No direct handling
What is the equation for Gross Income?
Number of hours worked times wage
Withholding Tax
The amount required by law for employers to withhold from earned wages to pay taxes
Deductions
The amount that is subtracted from gross pay
Net Income
The check amount that is often referred to as the take home pay
If someone works for $9.50/hour for 15 hours a week, what is the gross income?
$142.50
If gross income is $350 and total payroll withholdings were $85, what would her net income be?
$265
Paycheck Stub
A document an employee receives either as a notice of payment and deductions,
Year to Date
Accumulated deductions for the year
Payroll Card con
Card could get lost
Taxes are required charges of (blank) by local, state and federal governments.
Citizens
Payroll Card description
Electronically carries the balance of the employees net income
Paycheck pro
Employee controls when deposited
Form W-4
Employee's Withholding Allowance Certificate; it determines the amount of money withheld for taxes
Direct Deposit description
Employers directly deposit employee's paycheck into a bank account
FICA
Federal Insurance Contribution Act; includes Social Security and Medicare
Payroll Deductions
Items deducted from gross pay
Paycheck description
Paper check with a stub
Paycheck
Paper payment for the wages earned
Taxes
Required charges of citizens by local, state, and federal governments
What is a W-2?
Wage and tax statement
Direct Deposit
Wages go directly from an employer bank account to an employee's bank account
Direct Deposit pro
Will not get lost