Earning a Salary
Base Pay
The starting amount of pay before bonuses
Deductions
Amounts subtracted from gross pay
Social Security Tax
A federal tax that funds retirement benefits (6.2%)
Employee Benefits
Non-wage perks provided by employers
Interest
A percentage of money earned or charged for using money
Gross Pay
The total amount of pay before any deductions
Flat Tax
A tax rate that stays the same for everyone
Medicare Tax
A federal tax that funds health insurance for seniors (1.45%)
Fringe Benefits
Additional compensation beyond salary or wages
Service Charge
A fee charged by a bank for account services
Pay Period
The time covered by a paycheck
Progressive Tax
A tax rate that increases as income increases
FICA
The combined name for Social Security and Medicare taxes
Stipend
A small fixed payment for specific purposes
Checking Account
An account used for daily spending
Net Pay
The amount of money you take home after deductions
Dependent
Someone who relies on another person for financial support
W-4
The form employees fill out to determine how much tax to withhold
Pre-Tax Deductions
Amounts taken out of pay before taxes are applied
Savings Account
An account used for saving money and earning interest
Direct Deposit
When pay is automatically sent to your bank account
Taxable Income
The portion of income that is subject to taxation
State Income Tax
A tax collected by individual states on income
Job Expense
Costs employees pay to do their job
Deposit
Adding money into a bank account