typ of payment
Fixed payment for work expressed as an annual figure.
Salary
Total income before payroll deductions.
Gross pay
To use legal authority to impose a payment.
Levy;
Amount that is subtracted from the taxes an individual owes, if eligible.
Tax credit;
Paid directly to the government by the taxpayer.
Direct tax
Gross pay (plus bonuses) minus payroll deductions.
Net pay
All the income an individual receives in a year including both earned and unearned income
Gross income;
A Wage and tax statement shows an individual’s earnings and the taxes withheld from earned income during the current year.
Form W-2
Amount of total tax owed on income for the year.
Tax liability
Tax levied on one person or entity, but shifted to or paid by another.
Indirect tax
Subtraction from gross pay.
Payroll deduction
Federal spending that Congress legislated into law..
Mandatory expenditure
Earned; Incom received from employment including self-employment.
Earned
Report containing INFO used to calculate taxes owed by the taxpayer.
Tax return;
Imposing a higher tax rate on those with lower incomes.
Regressive tax
Amount paid for working time in a week that is beyond the standard 4-hour workweek.
Overtime wage;
Wage based on a rate per unit of work completed.
Piecework
Employee’s Withholding Allowance Certificate that helps an employer determine how much income tax to withhold from an employee’s paychecks as payroll deductions.
Form W-4;
Amount that is subtracted form adjusted gross income, which further reduces taxable income.
Tax deduction;
Taxes paid by the employee and employer that are used to finance the federal Social Security and medicare programs.
FICA taxes
Income paid as a percentage of sales made by a salesperson.
Commission
A federal program that provides income when earnings are reduced or stopped because of retirement, serious illness or injury, or death.
Social Security
Allowed expenses that can be deducted from adjusted gross income.
Itemized deduction
Government-issued tables that show a taxpayer’s total tax obligation for a year based on the amount of total income.
Tax table
Amount on which taxes are calculated.
Taxable income