Deductions & Withholdings
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
What is Social Security?
Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States
What is an I-9?
What employees earn before taxes, benefits and other payroll deductions are withheld from their wages
What is Gross Pay?
The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
What is a 1040 Form?
Taxes paid by employees to federal and state government through a direct deduction from their paycheck
What is Income Tax?
A form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors
What is a 1099?
This is what TYD stands for on your paystub
What is Year To Date?
A form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck
What is a W-2 form?
A government-run insurance program that provides healthcare assistance to elderly and disabled Americans
What is Medicare?
A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck
What is a W-4?
Take-home pay or the amount employees earn after all payroll deductions are subtracted from their total pay
What is Net Pay?
An amount that a government gives back to a taxpayer who has paid more taxes than were due
What is a Tax Refund?
A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare
What is the Federal Insurance Contributions Act (or FICA)?