Income
A person who works for a employer in exchange for compensation.
An individual who earns income directly from their own business or professional rather than working for another entity as an employee
Self - Employed
Who is a person hired to perform a specific task or service for another entity. One who controls their own work methods and hours.
Independent Contractor
Who is a employee who is paid a specific rate per hour.
Hourly Employee
Forms of non-cash compensation provided to employee in additional to their wages or salaries. Such as medical insurance or retirement plans
Benefits
Benefits that cover medical and surgical expenses
Medical Insurance
A specific type of employer sponsored contribution savings
401k
Total amount of $$ an employee earns before deductions
Gross Pay
The amount of pay after taxes and other deductions
Net Pay
IRS form that employer must send to employees before the end of January showing their annual wages
IRS form that an employee fills out to tell employer how much deductions to take
W4
Amount subtracted from gross pay to cover taxes, insurance etc.
Deductions
Pre tax deductions used for for education
529
Who is a employee who receives a fixed income
Salary Employee
Deductions taken from gross pay before income taxes are calculated. e.g. most 401 k
Prepaid Deductions.
None wage perks provided to employees like company cars, gym memberships and tuition assistance
Fringe benefits
IRS forms used to report non-employee compensation & income (income paid to independent contractors.
1099
Form used by employers to verify the identity and employment authorization of individuals hired for employment in the US
I9
A system where an individual stop workings permanently. Refers to savings plan
Retirement
Deductions and employee chooses to have taken out of their pay such as contribution to 401k plan and medical insurance
Voluntary Deductions
A federal insurance program that provides benefits to retire people/those with disabilities. Funded by mandatory employer/employee payroll taxes
Medicare
funded by payroll taxes (FICA) from workers and employers, offering financial security based on a person's work history. It replaces some earnings when you stop working due to old age, disability, or death, supporting workers and their families with monthly payments and covering needs like Medicare enrollment.
Social Security
Deductions required by law such as federal, State, and SS and Medicare taxes
Mandatory Deductions
Additional compensation, typically at a rate of 1.5 times the normal hourly wage required by law for certain employees working more than 40 hours in a work week
Overtime pay
A form or document that an individual seeking employment fills out to provide a potential employer with their background skills and work history
Job application