Paychecks & Taxes Vocabulary

Question 1

Pay Period

Answer 1

It is the length of time in which the employee’s wages are calculated or amounted.

Question 2

Gross Pay

Answer 2

It is the total amount of money earned without the deduction added in to the amount during a Pay Period.

Question 2

Net Pay

Answer 2

It is the amount of money earned with the deduction from the Gross Pay during the Pay Period.

Question 3

W-4 Form

Answer 3

It is the employee’s Withholding Allowance Certificate. A form filled out when starting a new job.

Question 4

Dependent

Answer 4

A person, such as a child or a non-working adult, who relies on a taxpayer for financial support.

Question 5

W-2 Form

Answer 5

It is what workers receive every year in January. Every employer receives this form too.

Question 6

Internal Revenue Service (IRS)

Answer 6

It is a group of government officials that collects taxes and enforces federal tax laws.

Question 7

Income Tax

Answer 7

It is a tax on every bit of earnings you get on your Pay Check.

Question 8

Federal Insurance Contributions Act (FICA)

Answer 8

It is an act that allows the federal government to reserve a percent of a Pay Check for Social Security Tax.

Question 9

Form 1040EZ

Answer 9

The simplest income tax return form to compete. Most new employees’ meet the conditions for using the single-page form.

Question 10

Audit

Answer 10

It is a check of you tax return made by the government.