Earned Income
Money made for performing a specific task or service
Income
These are considered _________ benefits
•Vacation
•Sick days
•Personal days
Pay without work
_______________ are based on consumption, income, and wealth.
•Taxes
• ______________ are based on consumption, income, and wealth.
Taxes
____________ is your total salary or wages
Gross pay
______________ – lowest rate by law
o Currently $7.25 in PA (Federal)
Minimum wage
The benefits you receive when there are Federal days off like Christmas, Thanksgiving, and New Years Day
Paid holidays
are paid directly to the government.
Examples: income and property taxes
•Direct taxes
•____________ are paid directly to the government.
Direct taxes
_____________ is your gross pay minus deductions.
•AKA – Take Home Pay
Net pay
•A _________ is pay for each hour worked.
wage
____________ are forms of pay other than salary or wages.
Benefits
_______________ are charged on goods or services bought by the consumer.
Examples: use, excise, and sales taxes
•Indirect taxes
• __________________ are charged on goods or services bought by the consumer.
Indirect taxes
•Amount based on exemptions (people you claim on your tax return as a dependent)
Income Tax
•A ____________ is set pay for each month or year worked.
Generally no overtime
salary
These are all examples of
•Health
•Life
•Disability
•Workers’ Comp
Insurance/HSAs
These are all examples of
•Property
•Estate
•Inheritance
•Gift
Wealth Taxes
Are Examples of what tax
•Property
•Estate
•Inheritance
•Gift
Wealth Taxes
is money withheld from a paycheck.
A deduction
____________– 1½ times regular rate
Overtime pay
_____________ money available to spend or save after taxes have been paid
Disposable income:
•Direct benefits Examples: social security, police, national parks
Public goods
Indirect benefits Examples: public education for citizens, free vaccines
the Benefits from Paying Taxes
•Gas
•Cigarettes
•Alcohol
•Utilities
•Luxury taxes
Only those who purchase the product or service
•Made up of Social Security Tax and Medicare Tax
•You pay half and employer pays other half
FICA (Federal Insurance Contributions Act)