Unit 2 Flashcards
Hourly Wage
you earn so much per hour worked.
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. At least 1.5 times regular hourly wage.
Salary
You receive a fixed rate of pay for each pay period regardless of how many hours worked.
Commission
You earn a percentage of the amount of sales you make.
Tips
You make money for providing a service for customers, who then leave a tip.
Piecework Rate
You earn a set amount of each piece produced or for each piece produced that exceeds the expected level of production
Entrepreneur
Is someone who is self-employed and owns a business
Lifestyle Business
Small business in which the owner plans to keep it small.
Venture Business
Small business but the owner plans to grow it into a large business.
Benefits
forms of pay other than salary or wages
Weekly pay period
get paid once a week
biweekly pay period
payed once every two weeks
semimonthly
payed twice a month
monthly
payed once a month
educational benefits
company pays for higher education
perks
extra things you get from your job
profit-sharing plan
bonuses, company shares a large profit they got with employees
stock option plan
purchase company stock at a reduced price
Unearned Income
money received from sources other than working in a job, either for yourself or for someone else
Transfer Payments
money and benefits received from local, state, or federal governments
In-Cash Payments
Money in the form of a check, 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 to those in need.
Income Tax
tax paid on all earned and unearned income
Sales tax
a consumption tax paid on the purchase of goods and services
property tax
tax paid based off of the value of any type of real estate.
wealth tax
tax on items of value that you own
capital gains tax
tax on the sale of any investment
gift tax
a tax on any gift more than $16,000 in a calendar year
Progressive Tax
a tax in which the rate increases as the payer’s income increases
regressive taz
a set flat percentage tax
payroll deduction
money taken out of an employee’s paycheck
social security tax
a withholding tax to provide old-age, survivors, and disability insurance
medicare tax
a tax that pays for medical care for retired people
gross pay
salary or wages received before taxes and other deductions are taken out
net pay
amount of money an employee takes home after taxes and other deductions have been subtracted from his or her earnings
disposable income
income remaining to spend or save after deductions have been taken out
form w-4
the form that determines the amount of tax the employer will withhold from you paycheck
exemption
a person claimed as a dependent on a tax return
dependent
a person who depends on you for more than half of his or her support
form i-9
the form used to verify an employee is eligible to work in the United States
form w-2
the form that reports an employee’s annual wages and the annual amount of taxes withheld from their paychecks
form 1099
the form used to report various types of income other than wages, salaries, and tips
form 1040
the standard form that taxpayers use to file their annual income tax return
