Payroll and Tax Terms

Form W-4

• Employee's Withholding Allowance Certificate; it determines the amount of money withheld for taxes

• A form used to apply for a job

• A tax return form for individuals

• A document for reporting business income

Deductions

• The total earnings before any deductions

• The amount that is subtracted from gross pay

• The net pay after all deductions

• The tax rate applied to gross income

Paycheck Stub

• A document an employee receives as a notice of payment and deductions

• A summary of an employee's annual salary

• A form used to request time off from work

• A record of an employee's performance reviews

Medicare

• Health care program for the elderly and disabled

• A type of private insurance

• A government program for children

• A health initiative for low-income families

Payroll Deductions

• Items deducted from gross pay

• Bonuses added to net pay

• Taxes paid to the government

• Overtime payments for extra hours

Direct Deposit

• Wages go directly from an employer bank account to an employee's bank account

• Wages are paid in cash at the end of each month

• Wages are transferred via check to the employee's home address

• Wages are deposited into a prepaid debit card

Year to Date

• Accumulated deductions for the year

• Total income for the year

• Expenses incurred in the year

• Net profit for the year

Take Home Pay

• The total salary before any deductions.

• The amount an employee receives after deductions, used to plan a budget.

• The amount of taxes an employee pays.

• The gross income of an employee.

Net Income

• The total revenue of a company after all expenses have been deducted

• The check amount that is often referred to as the take home pay

• The amount of money earned before taxes and deductions

• The profit made by a company before any expenses are subtracted

Social Security

• Provides retirement income for the elderly and pays disability benefits

• Offers free healthcare to all citizens

• Funds public education for children

• Supports international military operations