Unit 5.2 Vocabulary Practice

Front

Form W-4

Back

Used by your employer to determine the amount of taxes to withhold from your paycheck. The W-4 Form can help you out at tax time. It is an IRS form you complete to let your employer know how much money to withhold from your paycheck for federal taxes.

Front

Hourly Wage

Back

An amount of money paid each hour to compensate an employee for time he/she spends working.

Front

I-9 Form

Back

Employment eligibility verification form, used for verifying the identity and employment authorization of individuals hired for employment in the United States.

Front

Salary

Back

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Front

Exemptions

Back

The set amount of money, per dependent, you can subtract from your taxable income.

Front

Paycheck Stub

Back

A document attached to every paycheck that details your earnings and the amount withheld for taxes, health, insurance, retirement funds, etc.

Front

Withholding

Back

The portion of an employee’s wages that is not included in their paycheck because it goes directly to federal, state, and local taxes.

Front

Gross Pay

Back

What employees earn before taxes, benefits, and other payroll deductions are withheld from their wages.

Front

Net Pay

Back

Take-home pay or the amount employees earn after all payroll deductions are subtracted from their gross pay.

Front

Budget

Back

An estimate of income and expenditure for a set period of time.