Unit 2

Question 1

Hourly Wage

Answer 1

you earn so much per hour worked.

Question 2

Minimum Wage

Answer 2

The lowest pay rate allowed by law for each regular hour of work

Question 3

Overtime Pay

Answer 3

Pay received for hours worked in addition to regular hours. At least 1.5 times regular hourly wage.

Question 4

Salary

Answer 4

You receive a fixed rate of pay for each pay period regardless of how many hours worked.

Question 5

Commission

Answer 5

You earn a percentage of the amount of sales you make.

Question 6

Tips

Answer 6

You make money for providing a service for customers, who then leave a tip.

Question 7

Piecework Rate

Answer 7

You earn a set amount of each piece produced or for each piece produced that exceeds the expected level of production

Question 8

Entrepreneur

Answer 8

Is someone who is self-employed and owns a business

Question 9

Lifestyle Business

Answer 9

Small business in which the owner plans to keep it small.

Question 10

Venture Business

Answer 10

Small business but the owner plans to grow it into a large business.

Question 11

Benefits

Answer 11

forms of pay other than salary or wages

Question 12

Weekly pay period

Answer 12

get paid once a week

Question 13

biweekly pay period

Answer 13

payed once every two weeks

Question 14

semimonthly

Answer 14

payed twice a month

Question 15

monthly

Answer 15

payed once a month

Question 16

educational benefits

Answer 16

company pays for higher education

Question 17

perks

Answer 17

extra things you get from your job

Question 18

profit-sharing plan

Answer 18

bonuses, company shares a large profit they got with employees

Question 19

stock option plan

Answer 19

purchase company stock at a reduced price

Question 20

Unearned Income

Answer 20

money received from sources other than working in a job, either for yourself or for someone else

Question 21

Transfer Payments

Answer 21

money and benefits received from local, state, or federal governments

Question 22

In-Cash Payments

Answer 22

Money in the form of a check, debit card, or other direct payment given to a person needing assistance

Question 23

In-Kind Payments

Answer 23

payments made indirectly on a person’s behalf or paid in a form other than money to those in need.

Question 24

Income Tax

Answer 24

tax paid on all earned and unearned income

Question 25

Sales tax

Answer 25

a consumption tax paid on the purchase of goods and services

Question 26

property tax

Answer 26

tax paid based off of the value of any type of real estate.

Question 27

wealth tax

Answer 27

tax on items of value that you own

Question 28

capital gains tax

Answer 28

tax on the sale of any investment

Question 29

gift tax

Answer 29

a tax on any gift more than $16,000 in a calendar year

Question 30

Progressive Tax

Answer 30

a tax in which the rate increases as the payer’s income increases

Question 31

regressive taz

Answer 31

a set flat percentage tax

Question 32

payroll deduction

Answer 32

money taken out of an employee’s paycheck

Question 33

social security tax

Answer 33

a withholding tax to provide old-age, survivors, and disability insurance

Question 34

medicare tax

Answer 34

a tax that pays for medical care for retired people

Question 35

gross pay

Answer 35

salary or wages received before taxes and other deductions are taken out

Question 36

net pay

Answer 36

amount of money an employee takes home after taxes and other deductions have been subtracted from his or her earnings

Question 37

disposable income

Answer 37

income remaining to spend or save after deductions have been taken out

Question 38

form w-4

Answer 38

the form that determines the amount of tax the employer will withhold from you paycheck

Question 39

exemption

Answer 39

a person claimed as a dependent on a tax return

Question 40

dependent

Answer 40

a person who depends on you for more than half of his or her support

Question 41

form i-9

Answer 41

the form used to verify an employee is eligible to work in the United States

Question 42

form w-2

Answer 42

the form that reports an employee’s annual wages and the annual amount of taxes withheld from their paychecks

Question 43

form 1099

Answer 43

the form used to report various types of income other than wages, salaries, and tips

Question 44

form 1040

Answer 44

the standard form that taxpayers use to file their annual income tax return