Paycheck
What is the most common method of payment
paycheck
Benefit that allows workers to choose from a number of options.
Cafeteria plan
the rate at which employers pay a worker per hour worked
hourly wage
how many types of payments are there?
3
percentage of gross pay withheld
Approximately how much money is taken out of your paycheck
31%
The cost of health insurance
the premium
Hours worked: 35.5
Hourly rate: $16.50
$585.75
Type of payment where employers are able to transfer your net pay directly to your savings or checking account
Direct Deposit
how are federal taxes determined
allowances
Who collects federal taxes, issues regulations, and enforces tax laws passed by Congress?
IRS
2 types of retirement plans companies may offer
401K or 403B
calculate the gross earnings for the week given the hours worked and hourly rate
Hours worked: 40
Hourly rate: $20.75
$830
a person who relies on the taxpayer for financial support
dependent
How is gross pay determined
number of hours times the hourly rate
The total amount of money earned before deductions
Gross pay
Paid vacation, sick leave, personal leave, and holidays are all examples of
Pay without work
Calculate the gross earnings for the week given the hours worked, hourly rate, and a regular work week is 40 hours. Overtime pays time and one half. Ex. $10 per hour would be paid $15 per every overtime hour
hours worked: 51
Hourly rate: $20
$1130
pays retirement income for elderly and funds disabled benefits.
Social Security
Calculate the gross earnings for the week given the hours worked, hourly rate, and a regular work week is 40 hours. Overtime pays time and one half. Ex. $10 per hour would be paid $15 per every overtime hour
hours worked: 41
hourly rate: $44
$1,826
What is the largest deduction from an employee's gross pay?
Federal withholding tax
Allows the employee to share in the profits of the company
Profit-share plans
Calculate the gross earnings for the week given the hours worked, hourly rate, and a regular work week is 40 hours. Overtime pays time and one half. Ex. $10 per hour would be paid $15 per every overtime hour
Hours worked: 60
hourly rate: $40
$2,800
What percentage of gross income is deducted for Medicare?
1.45%
$600