Key Terms
What Is Gross Income?
All of the income an individual receives in a year.
Describe Sales Tax
Tax applied on the sale of goods and services, usually calculated as a percentage of the purchase price and collected by the seller.
how Do You Sign Your Check?
In Cursive.
Why do you need to use form W-4?
To give information to your employer for a job or ect.
What date are you supposed to file taxes every year?
April 15th
What Is Income Tax?
The Total tax deducted from an individual’s paycheck based on their net income
Describe Property Tax
Tax applied to personal property, such as a house or vehicles
What Is An Hourly Pay?
Pay that a person earns based on a set hourly rate
What is a prepared Form by the employer, reports an employee’s annual wages and the amount of taxes withheld from paychecks.
Form W-2
Why do governments impose minimum wages?
In order to help unskilled workers pay the bills.
What Is Net Pay?
The total once taxes and other payroll deductions are subtracted from your pay
Describe Social Security Tax
Tax on income paid by both the employee and the employer to fund the Social Security system
What is the difference between gross pay and net pay?
Gross income is what you make before any deductions.
Net pay is what is left after taxes, health benefits, and other deductions are taken out of your check.
What is an attachment to your paycheck that shows the amount earned and details the payroll deductions?
Paystub
What is 401(K)?
An employer-sponsored retirement plan, sometimes with matching funds
What Is Federal Income Tax?
The amount of federal tax on earnings imposed by the IRS based on tax tables
Describe Tax Deduction
The reduction of taxes paid on gross income
What Is An Salary?
A form of periodic payment from an employer to an employee, which may be specified in an employment contract.
What Is an Important IRS form used to show your income earned and taxes paid over the year
Form 1040
What is it called when you prove your identity in Form I-9?
Documents That Establish Identity
What Is Form W-4?
Form based on the information you provide to your employer
Describe Tax Credit
Money that can be subtracted from taxes owed
What Is Commission?
A fee paid to an agent or employee for transacting a piece of business or performing a service.
What is a paper comprised of a series of forms that catalog income that is earned outside of a job using Form W-2?
Form 1099
If you make $9,951 to $40,525 a year, what percent of taxes are you made to pay?
12%