Paycheck Vocab
What is a "Pay Period?"
What are credits?
Reductions of tax liability allowed by congress for various purposes
What are the 5 types of taxes?
Income
Payroll
Property
Sales
Excise
What is the purpose of the W-4?
The amount of money withheld from taxes
What is Gross Pay?
Total amount of money earned during the period before deductions
What is child tax credit?
Tax credit available to people with children under 17
What are some examples of income tax?
Wages and salary
What is the purpose of the I-9?
To prove citizenship
What is Net Pay?
The money left after deductions
What is the definition of "The IRS examines and verifies your return or any other transaction without consequences?"
Audit
What are the components of income tax?
Federal income + State income = Income tax
What is the difference between Direct Deposit and Paycheck?
Direct Deposit is deposited into your account immediately by your employer while paychecks are paper slips given to you by your employer.
What are deductions?
The amount of money subtracted or deducted from gross pay for mandatory taxes
What is "Couples that are married but choose to file separate tax returns?"
Married filing seperately
What are federal taxes used for?
Supporting the government and programs such as public education and natural disaster relief.
What is personal information?
The employee's name, address, and SS
What is " Forms that are used to report income, deductions, and credits"
Schedules
What is an example of an item that has excise tax?
Gas, cigarettes, alcohol, airline, and tickets
What are a few examples of Payroll Deductions?
FICA
Federal withholding
State Withholding