Flashcards
Paycheck deductions and budgeting terms
Cards in this deck (25)
- 1Federal withholding tax 1 HPthe amount required by law for employers to withhold from earned wages to pay taxes.
- 2FICA 2 HPa payroll tax. FICA stands for Federal Insurance Contributions Act (FICA) tax. This tax is used to fund Medicare and Social Security
- 3Financial well being 3 HPis defined as having financial security and financial freedom of choice, in the present and in the future.
- 4Fixed expense 4 HPexpenses that stay basically the same from month to month, such as rent, transportation, and tuition.
- 5Garnishments 5 HPa court-ordered method of debt collection in which a portion of a person's salary is paid to a creditor.
- 6Gross Domestic Product 6 HPMeasures of the value of all goods and services produced by a nation during a specified period of time.
- 7Gross Pay 7 HPthe entire amount of your income or paycheck before any deductions – like taxes or insurance payments – are subtracted
- 8IRS 8 HPThe U.S. government agency responsible for tax collection and tax law enforcement. Includes income tax forms, instructions, and agency publications.
- 9Mandatory deduction 9 HPThe employer is required by federal and/or state law to deduct a certain amount of the employee's pay and send it to an institution or governmental agency for the purpose of satisfying the employee's debt, or contribution to the employee's retirement account, or tax withholding.
- 10Medicare 10 HPis a federal government insurance program designed to provide healthcare coverage for people 65 or older, certain disabled people, and people certain chronic diseases
- 11Net pay 11 HPthe amount of money left over after all deductions have been taken from the gross pay earned in a pay period.
- 12Periodic Expenses 12 HPexpenses that happen occasionally throughout the year, but not a fixed amount that occur each month. (e.g. car repair, holiday gifts)
- 13Reconciliation 13 HPa report that accounts for all the differences between a bank statement and personal records (recommend to be done monthly)
- 14Self employed 14 HPworking for oneself or the owner of a business rather than for an employer. Required to pay self employment tax (including Medicare and Social Security Tax)
- 15Social Security 15 HPthis tax is taken to provide support for retirement income and disability benefits. 6.2% of an employee’s gross income.
- 16Standard of living 16 HPdegree to which one has the ability to obtain the goods and services one needs and wants.
- 17Union dues 17 HPare regular required payments of money made by it’s members. dues cover various activities which the union engages in.
- 18Voluntary deduction 18 HPdeductions from wages that are withheld from an employee's paycheck that are optional such (child care expenses, optional vision insurance, gym membership, union dues, etc
- 19W2 19 HPis the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year that includes the employee's wages.
- 20W4 20 HP(Employee’s Withholding Allowance Certificate)The form that determines the percentage of an employee’s pay that will be withheld for federal taxes
- 21City withholding tax 21 HPa percent deducted from individual’s paycheck to assist in funding government agencies within a city.
- 22Dependent 22 HPindividual who relies on someone else for financial support, such a child, a spouse, or elderly parent.
- 23Budget/Spending Plan 23 HPa paper or electronic document used to record planned and actual income through expenditures over a period of time
- 24Checking account 24 HPcash deposited into an account to make future cash purchases or withdraws. Cash purchases can be made by debit card, check, or electronic transfer. Cash can be withdrawn using a debit card or ATM.
- 25Expenditures 25 HPthe action of spending funds
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- Flashcards on Untitled, created by Haylee Palacios on 03/01/2022.
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- Haylee Palacios
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