Definitions
Payroll Deductions
amounts of money taken out of your pay for taxes
I-9
An employment eligibility verification form
Property Tax
Taxes applied to personal property
Surplus
Positive Cash Flow
Medicare
federal health insurance for anyone age 65 and older, and some people under 65 with certain disabilities or conditions
Social Security Tax
tax on income paid by both the employee and employer
W-2
Reports an employees annual waged and the amount of taxes withheld from paychecks
Income Tax
tax deducted from an individual's paycheck based on their net income
Deficit
A negative cash flow
Medicaid
a joint federal and state program that provides free or low-cost health coverage to millions of Americans
FICA
A federal tax used to fund the public service programs
1099
A series of forms that catalog income that is earned outside of a job using form W-2
Payroll Tax
tax deducted from an individuals paycheck
Net Pay
Take home pay
Tax Credit
money that can be subtracted from taxes owed
Tax liability
the amount of tax you owe
1040
Income earned and taxes paid over the year
Sales Tax
tax applied on the sale of goods and services
Cash Flow
Managing the outflow and inflow of cash
Gross Income
all of the income an individual receivies in a year
IRS
US federal government agency that collects taxes and enforces tax laws
W-4
a form that determines the amount of income tax deducted from your paycheck
The purpose of taxes
To pay for federal,state,and local goverment funds
Pay Stub
a document issued by an employer that shows an employee's gross earnings, deductions from those earnings, and net pay
a retirement savings plan sponsored by an employer