Chapter 2 Vocab Flashcards
benefits
forms of compensation in addition to salary or wages
commission
a set fee or percentage of a sale paid to an employee instead of or in addition to salary of wages
disposable income
money available to spend or save after taxes have been paid
minimum wage
the lowest pay rate allowed by law for each regular hour of work
overtime pay
pay received for hours worked in addition to regular hours
personal leave
paid time away from work for personal reasons
profit sharing
a benefit that allows employees to share a portion of the business’s profits
retirement plan
an account into which employees voluntarily contribute a portion of their earnings for their retirement; employers may match these contributions
sick leave
paid time away from work due to illness
dividends
a portion of a corporation’s profits distributed to shareholders
excise tax
a tax charged on the purchase of specific goods and services
in-cash payments
money in the form of a check, a debit card, or other direct payment given to a person needing assistance
in-kind payments
payments made indirectly on a person’s behalf or paid in a form other than money
interest
money earned on savings accounts and other funds
property tax
a wealth tax based on the assessed value of owned real estate
public goods
government provided goods and services paid for by taxes
sales tax
a tax levied as a percentage of the purchase price of goods and services sold to consumers
transfer payments
money and benefits received from local, state, or federal governments
unearned income
money received from sources other than working
use tax
a tax charged on the use, storage, or consumption of a good that was purchased in one state but used in another state
dependent
a person who depends on you for more than half of his or her support
exemption
a person claimed as a dependent on a tax return; property that a debtor in bankruptcy does not have to forfeit to pay off creditors
Form 1040EZ
the short tax return form designed for single and joint filers with no dependents or itemized deductions
Form W-2
a form used to report taxable income that a worker received during the calendar year
gross pay
total salary or wages earned during a pay period
medicare tax
a tax that pays for medical care for retired persons age 65 and older who receive Social Security benefits
net pay
the amount of your paycheck after deductions
social security
a withholding tax that pays for Old Age, Survivors, and Disability Insurance (OASDI) benefits
worker’s compensation
an insurance plan that pays medical and disability benefits to employees injured on the job
