Chapter 4: Your Take-home Pay
credit union
a savings and loan business that offers services to company employees and other groups
401(k) plan
a type of retirement plan into which an employee contributes money from each paycheck; employers may also make a contribution
savings bond
a way to save money; the purchase price of a savings bond is repaid wtih interest when the bond is sold
gross pay
amount of money earned by an employer
net pay
amount of money received after deductions have been taken
withheld
kept out; for example, money withheld from a salary
tax
money paid to the local, state, or federal government
deduction
money taken from gross pay for things such as taxes, health insurance, or union dues
exemption
reduction in your income tax for each person you support, including yourself
W-2 form
a federal tax form that shows your income for a year
interest
the money a bank pays you for keeping your money there
earnings statement
the paycheck stub listing gross pay, deductions, and net pay