payroll & wages
The total amount of money an employee earns before any deductions
What is gross pay?
This financial institution allows individuals and businesses to deposit money, take out loans, and write checks.
What is a bank?
The federal agency responsible for collecting taxes in the United States.
What is the IRS?
The process of comparing your checkbook balance to your bank statement.
What is bank reconciliation?
The process of budgeting and managing income and expenses.
What is personal finance?
A deduction taken out of an employee's paycheck to fund retirement benefits
What is Social Security tax?
A written order instructing a bank to pay a specific amount of money from an account.
What is a check?
This tax is deducted from employees' paychecks to fund Medicare.
What is Medicare tax?
Writing a check for more money than you have in your account results in this.
What is an overdraft?
The practice of keeping money in an account to earn interest over time.
What is saving?
A person paid a fixed amount per year instead of hourly wages is said to be on this type of pay.
What is salary?
This unique nine-digit number identifies a bank when processing checks or electronic payments.
What is a routing number?
If you are self-employed, you must pay this additional tax to cover Social Security and Medicare.
What is self-employment tax?
If a check is returned because the account holder does not have enough funds, it is called this.
What is a bounced check?
A fee charged by banks when an account balance falls below a certain amount.
What is a minimum balance fee?
This document, provided by an employer, summarizes an employee's earnings and tax withholdings for the year.
What is a W-2 form?
An account where you deposit money for everyday transactions, typically with a debit card.
What is a checking account?
This tax form is used by independent contractors and freelancers instead of a W-2.
What is a 1099 form?
This part of a checkbook helps you keep track of deposits, withdrawals, and balances.
What is a check register?
A government program that provides unemployment benefits.
What is unemployment insurance?)
The form employees fill out to determine their tax withholding amount.
What is a W-4 form?
A type of electronic transfer where funds move directly from one bank account to another.
What is an ACH transfer?
The percentage of income paid in federal taxes increases as income levels rise under this type of tax system.
What is a progressive tax system?
A special type of check guaranteed by a bank, often used for large purchases.
What is a cashier’s check?
This term describes money left over after all taxes and deductions are taken from a paycheck.
What is net pay?