Flashcards
Con econ unit 1
Cards in this deck (25)
- 11099 (1) AMis on IRS tax forms used to prepare and file an information return to report other types of income other than wages, salaries and tips (savings accounts, lottery, etc.)
- 2W2 (2) AMthe form that an employer must send to an employee and the IRS at the end of the year that includes the employee's wage
- 3W4 (3) AM(Employee's withholding allowance certificate) The form that determines the percentage of an employee's pay that will be withheld for federal taxes
- 4Voluntary deduction (4) AMdeductions from paychecks that are withheld from an employee's paycheck that are optional (child care, optional vision insurance, gym membership, union dues)
- 5Union Dues (5) AMrequired payments made by it's members that cover various activities the union engages in
- 6Social Security (6) AMthis tax is taken to provide support for retirement income and disability benefits. 6.2% of an employee's gross income
- 7Self Employed (7) AMWorking for oneself rather than an employer, required to pay self employment tax including medicare and social security tax
- 8Deduction (8) AMan amount of money withheld from the gross pay for taxes, medical benefits, union dues, etc.
- 9Dependent (9) AMan individual who relies on someone else for financial support, such a child, a spouse, or elderly parent.
- 10Expenditures (10) AMthe action of spending funds
- 11Federal withholding tax (11) AMthe amount required by law for employers to withhold from earned wages to pay taxes.
- 12FICA (12) AMa payroll tax, Federal Insurance Contributions Act (FICA) tax. This tax is used to fund Medicare and Social Security
- 13Financial well being (13) AMhaving financial security and financial freedom of choice, in the present and in the future.
- 14Fixed expense (14) AMexpenses that stay basically the same from month to month, such as rent, transportation, and tuition.
- 15Garnishments (15) AMa court-ordered method of debt collection in which a portion of a person's salary is paid to a creditor.
- 16Gross Domestic Product (16) AMGross Domestic Product-Measures of the value of all goods and services produced by a nation during a specified period of time.
- 17Gross Pay (17) AMthe entire amount of your income or paycheck before any deductions – like taxes or insurance payments
- 18IRS (18) AMThe U.S. government agency responsible for tax collection and tax law enforcement. Includes income tax forms, instructions, and agency publications.
- 19Mandatory deduction (19) AMThe 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.
- 20Medicare (20) AMa federal government insurance program designed to provide healthcare coverage for people 65 or older, certain disabled people, and people certain chronic diseases
- 21Net pay (21) AMthe amount of money left over after all deductions have been taken from the gross pay earned in a pay period.
- 22Periodic Expenses (22) AMexpenses that happen occasionally throughout the year, but not a fixed amount that occur each month. (e.g. car repair, holiday gifts)
- 23Reconciliation (23) AMa report that accounts for all the differences between a bank statement and personal records (recommend to be done monthly)
- 24Retirement deduction (24) AMthe amount an employee contributes for the retirement plan each pay period; it may be matched by the employer.
- 25Salary (25) AMthe minimum annual money received or the standard salary which an employee receives for doing a specific job includes a bonus or extra incentives.
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- Flashcards on Con econ unit 1, created by Ava Minge on 22/08/2022.
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- Ava Minge
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