Chapter 12 Accounting Vocabulary

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

• Tax Base

• Direct Deposit

• Withholding Allowance

• Individual Retirement Account

A federal tax paid for old-age, survivors, and disability insurance.

• Social Security Tax

• Medicare Tax

• Commission Tax

• 401(k)

A device used to record the dates and time of every employee's arrivals and departures.

• time clock

• 401(k)

• payroll clerk

• pay period

A method of paying an employee based on the amount of sales the employee generates.

• tax base

• witholding allowance

• net pay

• commission

A qualified retirement plan that allows tax-free withdrawals from the account.

• Roth individual retirement account

• qualified retirement plan

• 401(k)

• individual retirement account

A federal tax paid for hospital insurance.

• social security tax

• Medicare tax

• tax base

• commission

The total earnings paid to an employee after payroll taxes and other deductions.

• electronic funds transfer

• individual retirement account

• commission

• net pay

The maximum amount of gross earnings on which a tax is calculated.

• net pay

• tax base

• withholding allowance

• social security tax

A qualified retirement plan sponsored by an employer.

• 401(k)

• Roth individual retirement account

• direct deposit

• qualified retirement plan

The payment of an employee's net pay using electronic funds transfer.

• electronic funds transfer

• withholding allowance

• direct deposit

• net pay