1 / 14

Tax Vocabulary

Tax Vocabulary. Gross Pay. The amount of money you earn each pay period. Net Pay. The amount of money you receive after all deductions (gross pay-deductions=net pay). Federal income tax.

morton
Download Presentation

Tax Vocabulary

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tax Vocabulary

  2. Gross Pay • The amount of money you earn each pay period

  3. Net Pay • The amount of money you receive after all deductions • (gross pay-deductions=net pay)

  4. Federal income tax • The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.

  5. Federal Insurance Contribution Act Tax(FICA) • Provides benefits for retired workers and their dependents as well as for disabled workers. • Also know as Social Security Tax

  6. Form W-4Employee’s withholding allowance certificate • Completed by the employee and used by the employer to determine the amount of income tax to withhold.

  7. Medicare tax • Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.

  8. Payroll Taxes • Include Social Security and Medicare taxes

  9. Social Security Tax • Provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the “Federal Insurance Contributions Act” tax.

  10. Bonus Compensation received by an employee for services performed. A bonus is given in addition to an employee’s usual compensation.

  11. Commission • Compensation received by an employee for services performed. Commissions are paid based on a percentage of sales made or a fixed amount per sale.

  12. Salary • Compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.

  13. Tip income • Money and goods received for services performed by food servers, baggage handlers, hairdressers, and others. Tips go beyond the stated amount of the bill and are given voluntarily.

  14. wages • Compensation received by employees for services performed. Usually, wages are computed by multiplying an hourly pay rate by the number of hours worked.

More Related