Chap 5 Terms Flashcards
Additional Medicare Tax
an additional 0.9% in Medicare tax levied upon employees who earn in excess of a certain amount per year, as mandated by the ACA (Affordable Care Act).
Blockchain
a digital means of transferring electronic currency using small amounts of data transmitted via multiple computers.
Cryptocurrency
a form of currency that is digitally encrypted and transmitted.
Direct Deposit
the electronic transmission of employee wages from the employer to the employee’s account at the financial institution.
Escheatment
the transfer of personal property to the employee’s state of residence when no legal owner claims the property.
Federal Income Tax
a tax levied by the federal government on individuals.
FICA Tax
Federal Insurance Contribution Act of 1935
Local Income Tax
payroll taxes levied by a city or county government
Mandatory Deductions
payroll deductions over which the employee has no control; examples include taxes, garnishments, and certain retirement contributions
Medicare Tax
a payroll tax mandated to be paid by all employees of a firm to fund the Medicare program.
Net Pay
an employee’s wages or salary less all mandatory and voluntary deductions
Paycard
a debit card, issued to employees, that contains electronically transmitted wages
Percentage Method
a method used to compute an employee’s income tax liability that involves computations based no the employee’s wages, marital status, pay frequency, and number of withholding claimed on Forms W-4
Publication 15-T
the Federal Income Tax Withholding Methods
Regulation E
Federal legislation protecting consumers who used electronic funds tanker to access the net pay.
