earning income test

Question 1

Employment

Answer 1

an agreement between an employer and an employee 

Question 2

employer

Answer 2

Someone who hires a person in exchange for compensation, usually in the form of wages are

Question 3

Employee

Answer 3

A person who agrees to provide certain services at a job for an employer 

Question 4

salary

Answer 4

A fixed amount of money or compensation paid to an employee by an employer in return for performed work; salaries are commonly paid in stages at fixed intervals

Question 5

Commission

Answer 5

See that a sales person receives upon completion of a sale; it is a motivational system of payment designed to encourage sales to to be made more

Question 6

methods of payment

Answer 6

paper paycheck
direct deposit
payroll card

Question 7

Paper paycheck

Answer 7

your employer pays you by authorizing a check written to you in the amount of money earned; you are than able to access your wages by cashing your paycheck, and/or depositing it in a depository institution account

Question 8

Direct deposit

Answer 8

your wages are deposited directly into your depository institution account; this method is more secure than a paper paycheck because there’s no direct handling

Question 9

payroll card

Answer 9

A reloadable debit card onto which a workers pay is loaded; this is a good option. If you don’t have, can’t get it, or don’t want a traditional deposit account; when you make a purchase funds are automatically deducted from the balance of your payroll card.

Question 10

Gross income

Answer 10

The amount of money earned before payroll taxes

Question 11

net income

Answer 11

The amount of money you are left with once all deductions have been taken from your gross income 

Question 12

Income tax

Answer 12

taxi pay to federal, state, and local governments on the amount of money you earn 

Question 13

tax liability

Answer 13

total tax bill

Question 14

payroll tax

Answer 14

tax withheld for paid on your behalf, fire employer

Question 15

Federal income tax

Answer 15

text, levied by the United States interval, revenue service (IRS) on the annual earnings of individuals, corporations, trust, and other legal entities

Question 16

how is the amount withheld from federal income tax determined

Answer 16

It is based on the amount of money earned, and the information you provide on the form W-4 form

Question 17

form W-4

Answer 17

determines the amount of pay withheld from your paycheck to pay for your federal income tax liability 

Question 18

State income tax

Answer 18

An income tax, collected by most, but not all states

Question 19

social Security

Answer 19

Employers are required by law to withhold a Social Security tax from your earned wages; Social Security as a federal government program that funds, retirement accounts, financially support, citizens, who have experienced profound disability, the premature death of a parent, or premature death of a spouse and a family with children

Question 20

What percent of your earnings go to Social Security?

Answer 20

6.2%

Question 21

medicare

Answer 21

Employers are required by law to withhold from your earned income, this payroll contribution to Medicare; Medicare is a federal program whose main purpose is to help pay for healthcare for those over 65

Question 22

What percent of workers contribute to Medicare?

Answer 22

1.45%

Question 23

employee benefits

Answer 23

Employers may offer you employee benefits in the form of products or services that add extra value for employees beyond earned wages; you may pay a portion of the cost of the benefit 

Question 24

What is outlined on your paystub?

Answer 24

information regarding deductions

Question 25

what is included on a paystub?

Answer 25

employee information: name, address, and employee identification number

pay period: regular schedule by what your employee will pay you

hours and earnings: indicate how the amount of wages you earned was calculated

Question 26

Gross income

Answer 26

Amount of pay you earned before deductions

Question 27

deductions

Answer 27

lists all subtractions taken from your gross income, including income, taxes, payroll, taxes, and any additional optional deductions

Question 28

Employer contributions

Answer 28

if your employer has contributed to various employee benefits, and other contributions on your behalf, that amount will be reflected in the section 

Question 29

Net income

Answer 29

This is your take home pay; it is the amount of pay you earned after your deductions

Question 30

Employee leave balances

Answer 30

A summary of the employees time balances, including sick, vacation, and/or holidays