gross pay
What is gross pay?
Pay without deductions.
Pay before taxes.
What is net pay?
The amount leftover from an employee's wages after payroll deductions, taxes, have been subtracted *We catch what is left,in the net after taxes*
What is a contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions called?
Tax
Money that is taken out of your pay, other than taxes is what?
A deduction. Healthcare, dental, eye, disability.
How many checks do you get in a month?
Typically 2. Some odd months you could get 3 if you are paid every 2 weeks! (Bonus)
What is the difference between net and gross pay?
net pay is your take home money (after taxes) and gross pay is the deductions (before taxes)
How do we calculate net pay?
Gross pay - taxes & deductions = net pay
What do you call employer withhold payroll taxes and income tax employee pay?
Payroll tax
Who can you claim as a dependent?
Any qualifying child or relative.
How may hours is full time wage?
40 hours a week
How can you find your yearly salary?
Multiplying the number of hours worked in the pay period times the hourly pay rate.
Also known as the Gross Pay Formula.
What is time worked beyond regular hours?
Overtime
What provides retirement benefits, and benefits for the dependent of retired workers?
Social Security Tax
What is an example of a deduction?
Healthcare, dental, eye, disability.
What is a fixed regular payment, typically paid on a weekly basis?
Wage
What does gross pay go to?
The subtractions from your gross pay will include federal, state, local income taxes and Federal Insurance Contributions Act (FICA)
What is another name for net pay?
Take home pay
FICA medicare, State, Medicare are examples of what?
Taxes
What form will show your deductions?
1040
What is the difference between wage and salary?
Wage- is the employee pay based on the number of hours worked, multiplied by an hourly rate of pay.
Salary- is an agreed annual amount, paid at agreed intervals (i.e., monthly).
What is another name for gross pay?
Taxable income
$3,000 gross pay - $600 deductions = how much net pay?
$2,400 take home
When will you receive a W2?
In the mail at the beginning of the year. This will show how much money you made, how much you paid in for taxes for the year.
What are 3 types of tax return filing status?
What is the federal minimum wage?
$7.25 per hour effective July 24, 2009