Vocabulary
extra pay for a job well done
What is a bonus
Working over 40 hours in one week and receiving 1.5 times your normal wage.
What is overtime pay
Most ________ are for taxes (and they are mandatory)
deductions
Provides financial support for people that depend on you in the event of your untimely death
What is life insurance
failing to repay a loan
What is defaulting
Combination of salary and benefits an employer provides to an employee
What is a compensation package
You contribute a % of your pay and your employer will usually contribute a % on your behalf as well for your retirement.
What is 401K Savings
the total amount of income from your wages or salary before payroll deductions.
What is gross income
a federal insurance program that provides benefits to retired people and those who are unemployed or disabled.
What is social security
employees withholding allowance certificate (determines how much they take out for taxes)
What is W4
An amount paid to the U.S Treasury to support US government programs and services.
What is Federal Income Tax
Includes sick days, vacation days, and holidays
What is paid time off (PTO)
How many times are you paid per year if you are paid bi-weekly?
26 times a year.
Social Security Percentage Deducted from your Paycheck
6.2%
Your employer provides funding for education costs you incur while furthering your education or job related skills/knowledge
What is tuition reimbursment
The value of what you give up when you choose one option over another
What is opportunity cost
2 retirement benefits types are...
What is pension plan and 401K savings
Name 3 of the 4 payroll tax deductions
What is Federal Income Tax, FICA, Medicare, State Income Tax
What percent of your gross income is deducted for Medicare per pay period?
What is 1.45%
How long is the grace period for student loan payments to come due after graduation?
6 months
Allows you to put off making payments while in school, interest still accumulates which increases how much you will pay.
What is Loan Deferment
5 types of income
What is wage, salary, commission, bonus, tips
A zookeeper in CT has an annual salary of $26,000. She is paid bi-weekly, how much is her gross income for one pay period?
What is $1000 every 2 weeks
If you have to contribute $2,600 per year for health insurance, how much gets deducted per pay period if you are paid bi-weekly?
What is $100. $2,600 divided by 26= $100.
Bobby works as a waiter at the Personal Finance Pizzeria. He is an exceptionally talented waiter and received $300 in tips this week, therefore if Bobby worked 20 hours this week at minimum wage ($10.10), what would his gross income be?
What is $502 (Way to go Bobby!) 20 x $10.10 = $202 $202 + $300= $502