Income/Employment Vocabulary

Front

The transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff

Back

Electronic transfer

Front

Non-wage compensation provided to employees in addition to their normal wages or salaries

Back

Employment benefits

Front

Claimed on your Form 1040. They reduce your taxable income and, therefore, your income tax: Allowance, Exemption, Garnishment, Income tax deductions

Back

Exemption

Front

Claimed on Form W-4 — when you start a new job, for instance

Back

Allowance

Front

Tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities

Back

Federal taxes

Front

An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc

Back

Fringe benefits

Front

Total amount you pay an employee before you withhold taxes and other deductions

Back

Gross wages

Front

Money received, especially on a regular basis, for work or through investments

Back

Income

Front

A court order directing that money or property of a third party (usually wages paid by an employer) be seized to satisfy a debt owed by a debtor to a plaintiff creditor.

Back

Garnishment

Front

What is a tax deduction?

Back

A deduction that lowers a person's tax liability by lowering their taxable income, allowing expenses incurred during the year to be applied against or subtracted from gross income to determine tax owed.