Tax and Employment Terms

Net Pay

• Amount of money left over after all deductions are taken out.

• Total earnings before any deductions.

• The amount of taxes owed to the government.

• The gross income before any expenses.

Federal Tax

• The smallest withholding from your paycheck, which is fixed regardless of income.

• The largest withholding from your paycheck and the amount depends on how much money you made and what you indicated on your W4.

• A tax that is only applicable to self-employed individuals.

• A tax that is refunded to you at the end of the year regardless of your income.

Part time

• A. Full time

• B. Part time

• C. Overtime

• D. Temporary

IRS

• Government agency that collects and enforces the tax laws.

• A private organization that manages investments.

• A non-profit organization that provides financial advice.

• An international body that regulates trade.

1040 Form

• A document individual taxpayers use to file their annual income tax returns to the IRS.

• A form used by businesses to report their quarterly earnings.

• A tax form for reporting capital gains and losses.

• A document for claiming tax deductions for charitable contributions.

Medical Insurance Premium

• Mandatory payment for healthcare services.

• Voluntary deduction for your healthcare coverage.

• Fixed cost for hospital visits.

• Annual fee for medical consultations.

State Tax

• The percentage deducted from an individual’s paycheck to assist in funding government agencies within the state.

• A flat fee paid by all residents regardless of income.

• A tax imposed only on luxury goods and services.

• A tax that is only applicable to businesses and corporations.

Direct Deposit

• Deposit of funds electronically into a bank account rather than through a physical, paper check.

• A method of withdrawing cash from an ATM using a debit card.

• A process of transferring money between different banks using checks.

• A service that allows customers to receive paper checks in the mail.

Gross Pay

• Total amount of money earned before deductions.

• Amount of money after taxes are deducted.

• Total expenses incurred by an employee.

• Net income after all deductions.

Full Time

• When you work at least 40 hours, you are considered this.

• When you work less than 20 hours a week.

• When you are employed on a temporary basis.

• When you work only weekends.