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14 Cards in this Set

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Salary

Set amount of money earned by a person in a year regardless of number of hours worked

FLEX Account

Pre-tax benefit that allows employees to pay for expenses, such as daycare, before taxes - lowers tax liability

Exemption

An allowance a taxpayer can claim on their W4 form if they did not have to pay taxes last year and do not expect to pay any this year. Therefore no taxes will be taken out.

Regular Wages

Calculated by multiplying regular rate x regular pay.

Overtime wages

Calculated by multiplying overtime rate x overtime hours

Gross pay

Pay before any deductions

Net Pay

Pay after all deductions are taken out

W-4

Form completed by employees when hired to set the number of exemptions they would like to claim.

W-2

Tax form returned to employees for them to file their state and federal taxes

Profit Sharing

Benefit offered by some employers where profits made by the company are shared with the employees.

Calculate Jackies Gross Pay:


Worked 45 hours.


40 hours were Regular hours


Jackie is paid $10 per hour and makes time and a half for overtime

40 x 10 = 400 regular pay


5 x 15 = 75 overtime pay


= 475 gross pay

The more exemptions you claim, the _______ taxes are taken out of your check.

Less

The less exemptions you claim, the ______ taxes are taken out of your check.

More

4 Mandatory Income Taxes

State Income Tax


Federal Income Tax


Social Security


Medicare