Vocabulary
Employee's total earnings before taxes, withholdings, and deductions
What is Gross Pay
Which of the following is considered the starting point of managing personal finance?
What is Income
Which of the following must an employee fill out prior to receiving compensation from their employer?
What is a W-4 form
Filing status for unmarried, divorced, or legally separated individuals
What is single
Keeps track of incoming and outgoing money
What is a budget
Money a person receives for work or investments on a regular basis
What is Income
Is the money and income a person or household expends on goods and services?
What is spending
Is also called take-home pay
What is net pay
For married couples who choose to file separate tax returns
What is married filing separately
Are employer-provided retirement savings and investment plans
What is a 401(k)
Includes all individual and household financial decisions about personal and household budgets, savings, retirement planning, and insurance decisions
What is Personal Finance
Is the money people save through a bank or investment plan and creates a backup plan for life's uncertainties
What is savings
A W-4 is also known as what?
What is an Employee's Withholding Certificate
For unmarried taxpayers who pay more than half the cost of keeping up a home for themselves and a qualifying person living in the same home
What is head of household
Gross pay - deductions = _________
What is net pay
Single deduction based on a fixed amount
What is Standard deduction
Provides monetary coverage for loss of life
What is life insurance
Is a summary of an employee's total gross income, deductions, and net income since the start of the calendar year
What is YTD income
For married couples who wish to file a joint, or combined, tax return
What is married filing jointly
Is when someone safeguards themselves against present and future financial risks and allows themselves to be prepared for life's unexpected moments
What is financial security
Applicable if the spouse died during one of the two previous years and they have a dependent child
What is Qualifying Widow(er) with Dependent Child
Is purchased for a price and pays out monthly payments to individuals
What are annuities
Is a federal payroll tax that is deducted from each paycheck that contributes towards Social Security and Medicare/Medicaid programs
What is FICA
Applicable if the spouse died during one of the two previous years and they have a dependent child
Ranges from 10% for individuals making less than $10,275 to 37% for individuals making more than $539,901
What are federal taxes