How We Get Paid
This is like a debit card that an employer can add compensation for a pay period.
Payroll Card
The federal agency responsible for administering and enforcing the U.S. Treasury Department’s tax revenue laws through assessment and collection of taxes.
IRS (Internal Revenue Service)
Percentage of total sales of items that are earned by a salesperson
Commission
Local, state and federal income taxes are considered these type of deductions.
Mandatory
Typically paid after 40 completed hours of work in a week.
Overtime
This is an actual hard copy as compensation for work performed.
Paycheck
A summary, provided by the employer, of the amount of money earned and taxes withheld throughout the previous year.
W-2
Type of compensation for service provided by a waiter/waitress
Tips/Gratuities
The federal act under which mandatory contributions for Social Security and Medicare are deducted from one’s pay.
FICA
Overtime hours are calculated this way
Hourly Rate x 1.5
This is the total amount of income earned for a pay period.
Gross Pay
Tax form that reports other sources of income (such as bank account interest, investment dividends, or lottery winnings) earned in a tax year.
1099
Percentage given to employees if profits are up for a company/corporation
Profit Sharing
A federal government program that provides health insurance coverage for people who are 65 or older or have certain disabilities
Medicare
Salary
Paper document that includes an employee's gross earnings, deductions and net pay for this pay period as well as yearly cumulative amounts.
Pay Stub
Information within this form determines the percentage of gross pay to be withheld for taxes. Also known as the Employee’s Withholding Allowance Certificate
Money subtracted from gross pay for required taxes, employee insurance, and retirement benefits
Deductions
A federal government program that provides monetary benefits to people who are retired or are disabled.
Type of compensation that is specific rate of pay multiplied by the length of time an employee puts in at work during pay period
Hourly
Gross pay less deductions both mandatory and optional.
Net Pay
Information gathered on this form is for employers to verify eligibility of individuals for employment. Also known as Employment Eligibility Verification Form.
Funds withheld from one’s paycheck to fund the payment of monthly insurance payments. The types of insurance policies which one may obtain from their employer include health, dental, vision, life, and disability.
Insurance
These type of deductions include pensions, 401k, or 403b accounts.
Retirement
Bonus