Your Paycheck
Amount of salary or wages earned for a certain period of time before deductions are withheld.
Gross Pay
A tax by which the government takes the same share of income from everyone, rich and poor alike. Ex: Property Tax
Proportional Tax
A written order to a bank to pay the amount stated to the person or business named on it.
A check
variable amounts that you can subtract, or deduct, from your gross income
Deductions
What are sick days?
A set amount of days per year allocated by a company for an employee to use when sick. They are not required to be at work and do not receive a decrease in pay due to their using a "sick day"
Amount of income left after taxes and deductions have been taken out.
Net Pay, otherwise known as "take-home pay"
A tax graduated so that people with higher incomes pay larger fraction of their income than people with lower incomes.
Ex: Tax Bracket
Progressive Tax
A check written for more money than your account contains is called an ______ when this occurs, the bank will mark your check NSF which means ___ ___ ____. This means that your check has _____.
1) Overdraft
2) Not Sufficient Funds
3)Bounced
reductions in the amount of tax withheld from your paycheck
Allowances
What is profit sharing?
a form of compensation whereby a percentage of company profits is distributed to the employees whose work helped to generate them
An amount of money paid to an employee at a specific rate per hour worked.
A wage
A tax in which the burden falls relatively more heavily on low-income groups than on wealthy taxpayers. The opposite of a progressive tax, in which tax rates increase as income increases.
Regressive Tax
Writing a check and hoping to deposit money to cover it before the check clears. This is illegal.
Floating a Check
Describes your tax-filing group, which is based on your marital status as of the last day of the tax year.
Filing Status
What are stock options?
certain employees are given the right to buy stock at a future date for a discounted price
Overtime rate is ____ times the regular rate.
1 & 1/2
A tax paid on expensive goods and services considered by the government to be nonessential.
Ex: Paying taxes on a yacht
Luxury Tax
There are three major types of endorsements on checks
Blank endorsement
Full endorsement
Restrictive endorsement
income on which tax must be paid; total income minus exemptions and deductions
Taxable Income
What is incentive pay?
money offered to encourage employees to strive for higher levels of performance
What is the equation for net pay?
Gross Pay - Deductions = Net Pay
A tax levied on the returns that people earn from capital investments, like the profits from the sale of stocks or a home
Capital Gains Tax
Most banks offer FDIC (____ ___ ___ ____)insurance, which protects the deposits of customers against loss up to $________ per account.
1) Federal Deposit Insurance Corporation
2) $250,000
an amount you may subtract from your income for each person who depends on your income to live
Exemption
What is the main advantage & disadvantage of an employee being able to take a leave of absence?
Disadvantage: Unpaid
Advantage: Job security