Accounting Chapter 12

Salary

• A fixed regular payment, typically paid on a monthly or biweekly basis, but often expressed as an annual sum

• An amount of money given as a reward for a particular action

• A payment made to a worker in return for work done

• A sum of money given in exchange for goods or services

Payroll

• the total amount of wages and salaries paid by a company to its employees

• The amount of money a company has to pay for taxes

• The amount of money a company has to pay for rent

• The amount of money a company has to pay for supplies

Pay Period

• a time frame used to calculate earned wages and determine when employees receive their paychecks.

• A period of time when employees are not allowed to work.

• A period of time when employees are required to take a break from work.

• A period of time when employees are given extra benefits.

Total Earnings

• all wages, salary, commission and other remuneration for services rendered under the worker's wage earning agreement with the employer

• All taxes, fees, and other deductions from the worker's wages

• All benefits, such as health insurance, vacation pay, and retirement contributions

• All expenses related to the worker's job, such as travel, meals, and supplies

Payroll Taxes

• taxes employees and employers pay on wages, tips, and salaries

• taxes paid on goods and services

• taxes paid on investments

• taxes paid on property

Withholding Allowances

• exemption that lowers the amount of income tax you must deduct from an employee's paycheck

• A type of tax break given to businesses

• A type of deduction taken from an employee's salary

• A type of benefit given to employees

Social Security Tax

• a percentage of gross wages that most employees, employers and self-employed workers must pay to fund the federal program

• A flat fee that most employees, employers and self-employed workers must pay to fund the federal program

• A tax on income that most employees, employers and self-employed workers must pay to fund the federal program

• A tax on wages that most employees, employers and self-employed workers must pay to fund the federal program

Medicare Tax

• a percentage of gross wages that all employees, employers and self-employed workers must pay to fund Medicare

• A fee charged to individuals over the age of 65 to receive health care benefits

• A tax imposed that all employees, employers and self-employed workers must pay to fund Social Security

• A levy imposed on employers to fund Medicaid

Tax Table

• a tool the IRS provides to make it easy to calculate the exact amount of taxes to report on your federal income tax return when filing by hand

• A document that outlines the different tax brackets for your state income tax return

• A spreadsheet that tracks the amount of taxes paid for your federal income tax return

• A form used to report income to the government

Payroll Register

• a record of payroll information for every employee each pay period

• A list of all employees and their salaries

• A document that tracks employee hours worked

• A ledger of employee benefits and deductions