Savings
This is a phrase used when all of your earnings for a pay period are spent on needs and there is no money left for an emergency fund.
What is "living paycheck to paycheck"?
An employee who earns a bi-weekly paycheck is paid this many times a year.
What is 26 times?
This is the additional money an employee recieves for working beyond the normal 40 hours, often at a higher pay rate.
What is Overtime (OT)?
This is the government agency responsible for collecting taxes and enforcing tax laws in the United States.
What is the IRS?
This describes the decrease in the value of an asset as a result of use and age.
What is depreciation?
This calculation is a person's assets less their liabiliates.
What is net worth?
Health insurance, life insurance and contributions to a retirement account are examples of this kind of payroll deduction.
What is voluntary deduction?
This is the percentage of your paycheck withheld for a federal tax that funds Social Security benefits.
What is 6.2%?
This is the total amount of taxes an individual owes to the government based on their income, deductions, and credits.
What is tax liability?
This type of deduction is often used by taxpayers who have significant medical expenses, charitable contributions, or mortgage interest and requires proof of payment.
What are itemized deductions?
What is an emergency fund?
This is the amount of money an employee earns before any deductions are made.
What is gross pay?
This is the amount of net pay for an employee who earns $1,500 in gross pay and has $400 in deductions.
What is $1,100?
This form reports an employee's YTD wages earned and taxes withheld by their employer for the previous tax year.
What is IRS Form W-2?
Kyle Smith is a single father, living in McAllen, Tx. raising 16 year-old twin daughters. He earned a gross salary of $52,800 in 2023. What filing status will he use on his tax returns?
What is Head of Household?
This is the budgeting rule that divides your income into three spending categories.
What is is the 50/30/20 rule?
This is the mandatory federal payroll deduction that provides benefits for retirees, people with disabilities, and surviving family members of deceased workers.
What is Social Security?
This is the amount of gross pay for an employee earning a salary of $52,000 per year, paid semi-monthly.
What is $2,166.67? ($52,000 ÷ 24 = 2,166.66666)
The IRS sets this date each year as the deadline for individuals to file their tax returns or to file for an extension.
What is April 15th?
This is a type of expense that changes in the amount owed based on usage.
What is variable expense?
This decreases in value over time.
What is money?
The section of a paystub that shows the total amount of taxes and deductions withheld from an employee's pay for the year.
What is Year-To-Date (YTD)?
This is the YTD federal income tax withheld for the following: An employee's YTD federal income tax withholding is $2,500 in April. $300 is deducted for federal income tax on the first paycheck in May.
What is $2,800? ($2,500 + $300)
This box on Form W-2 reports the YTD wages or salary earned by an employee during the previous tax year.
What is Box 1?
Danny is a car salesman who earns a monthly salary of $2,000, plus a 5% commission on the sale price of each car he sells. In August 2024, he sold 5 cars, with a sales price of $25,000 each. What is Danny's gross pay for the month?
What is $8,250.00