Personal Finance Chapter 2

net pay

the amount received after all deductions have been subtracted from a paycheck; also called take-home pay

articles of incorporation

the primary rules governing the management of a corporation

franchisor

the recognized company under which a franchise operates

entrepreneurship

the skills related to organizing, managing, and taking on the risks of owning a business

gross pay

the total amount of wages or salary earned before any deductions are subtracted

telecommuting

working outside the office, usually from home, using a computer

Form w-4

a IRS form indicating how much should be withheld from an employee's earnings to pay federal income taxes

franchise

a legal contract allowing an individual or group to operate a business in the name of a recognized company

mentor

a more experienced person who offers advice and support to guide someones career decisions

limited liability company (LLC)

a relatively new type of corporate arrangement whose owners have limited personal liability for the debts and actions of the company, and with other features more like a partnership

exempt status

a release from paying taxes because of insufficient income

job sharing

a situation in which two or more employees share the same job

community college

a two year college that offers an associates degree; also called a junior college or a city college

tax allowances

amounts calculated on the Form w-4 that reduce the federal tax withheld from a person's paycheck

deductions

amounts subtracted from gross pay, such as social security tax, federal and state income tax withholding, health insurance, retirement, and so forth; also refers to expenses that are subtracted from income on a tax return

apprenticeship program

an education that combines on-the-job training with formal classroom instruction

trade school

an institution of higher learning that teaches the skilled trades

exemptions

another word for tax allowances

in-service training

employee classes for developing skills, providing information, and improving working relationships among employees; also called professional development seminars

overtime

hours worked in addition to the legal limit of forty hours per week

learning networks

online discussions in which participants share skills and knowledge

WiFi

short for wireless fidelity, a high-speed internet connection

company policy handbook

a booklet outlining a company's rules, policies, and procedures

flextime

a work schedule with flexible hours

franchisee

the person who operates a franchise