Personal Finance: Ch. 2, 3
arbitration
A formal process that uses a neutral third party with expertise in legal issues to make a formal decision that had the same effect as a court order
union
A group of people working in the same or similar occupations, organized for the benefit of all
job rotation
A job design in which employees are trained to do more than one specialized task
voluntary compliance
A tax system that requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due
flextime
A type of work schedule that allows employees to choose their working hours outside of core time periods
taxable income
After the standard deduction and exemptions are subtracted from adjusted gross income, you arrive at your
deductions
Amounts that are subtracted from your gross pay
tax credit
An amount subtracted directly from tax owed
exemption
An amount you may subtract from your income for each person who depends on your income to live
lobbying
An effort made to influence legislation in a way that benefits a profession
audit
An examination of tax returns by the IRS
profit sharing
An incentive plan that allows employees to receive a portion of the company's profit at the end of the corporate year
benefits
Company-provided supplements to salaries such as sick pay, vacation time, and health insurance
itemized deductions
Expenses that can be subtracted from adjusted gross income to determine your taxable income
itemized deductions
Expenses that can subtracted from adjusted gross income to determine your taxable income
flextime
Flexible schedules that allow employees to choose their working hours within defined limits
standard deduction
In order to avoid itemizing deductions, a person may elect to take the (a flat amount)
industrial union
Membership of skilled, semi skilled, or unskilled workers in a particular place, industry, or group of industries
revenue
Money collected by the government from citizens and businesses in the form of taxes
child support
Money paid to a former spouse (not taxable income) for the support of dependent children
alimony
Money paid to former spouse (taxable income) for that person's support
proportional taxes
Taxes for which the rate remains constant, regardless of income
progressive taxes
Taxes that take a larger share of income as the amount of income grows
net pay
The amount left over after all deductions have been taken out of your gross pay
adjusted gross income
The amount remaining when adjustments are subtracted from gross income
seniority
The policy that the last workers hired will be the first ones laid off when jobs must be cut
collective bargaining
The process of negotiating the terms of employment for union members
overtime
The time worked beyond the standard 40 hours in a typical five day period
self-employment tax
The total Social Security and Medicare tax, including employer matching contributions, paid by people who work for themselves
gross pay
The total amount you earn before any deductions are subtracted
regressive taxes
The type of tax that requires those who can least afford it to pay the most in proportion to their income
incentive
To encourage employees to strive for higher levels of performance
vested
When employees are entitled to receive a full retirement account after a specified period of time
strike
When employers and union officials cannot agree on the terms of a new labor contract, the result is often a
refund
When the amount of taxes withheld is larger than your total tax owed
job sharing
When two people share what was originally a full time position
tax evasion
Willful failure to pay taxes
April 15
You must file your federal income tax by this date
