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26 Cards in this Set
- Front
- Back
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Adjusted Gross Income |
Totalincome minus certain allowable amounts such as contributions to some retirementaccounts, alimony payments, and interest paid on student loans |
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Commission |
Feecharged by a brokerage firm for carrying out a transaction. OR Moneyearned for an individual when a sale is made |
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Deductions |
Amountof money taken from an employee’s gross pay for taxes, insurance, SocialSecurity, and other benefits |
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Direct Deposit |
Anarrangement in which a person’s pay is electronically transferred directly intothe recipient’s bank account |
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Disposable Income |
Totalpersonal income minus personal current taxes |
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Exemption |
Theprocess of exempting a person from paying taxes on a specific amount of incomefor themselves and their dependents |
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FICA |
Federal Insurance Contribution Act ◦SocialSecurity and Medicare Taxes |
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Garnishment |
Legalaction which requires a portion of a person’s income to be withheld from theirpaycheck to repay a debt |
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Gross Income |
Thetotal amount of a person’s income. |
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Gross Pay |
Hourlywage multiplied by hours worked |
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Incentive Pay |
Additionalmoney, or other rewards of value such as stock options or bonuses, that aresupplementary to base salary |
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IRS |
Abranch of the United States Treasury Department that carries out the federaltax system. |
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Net Pay |
Wagesthat remain after taxes are withheld (take-home pay). |
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Overtime |
Extrapay for each hour worked in excess of 40 hours per week |
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Pay Period |
Startand end dates used to calculate earnings |
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Payroll Card |
Prepaidcard instead of a paper check or direct deposit |
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Salary |
Moneyearned on a fixed basis |
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Standard Deduction |
Afixed amount individuals are allowed to deduct from their adjusted gross incometo reduce their tax liability. |
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Taxable Income |
Baseon which an income tax system imposed taxes |
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Tax Brackets |
ARange of incomes taxes at a given rate |
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Tax Credit |
Theamount of money that can be offset against a tax liability |
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Tax Evasion |
Theillegal nonpayment of underpayment of tax |
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Wage |
Moneyearned by the hour |
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W-2 Form |
Theform that an employer must send to an employee and the IRS at the end of theyear. Reportsemployee’s annual wages and the amount of taxes withheld from his or herpaycheck. |
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W-4 Form |
Aform completed by an employee to indicate his or her tax situation to theemployer Exemptions Marital Status Personal Information Tellsthe employee the correct amount of tax to withhold from the employee’s check. |
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1040 EZ |
Incometax form that offers a faster and easier way to file taxes for a taxpayer whois single with no dependents |
