Payroll & Tax Terms
1.
2.
FICA -
a tax on employees and employers that is used to fund the Social Security system
3.
Gross Earnings vs Net Earnings -
An individual's taxable income before any adjustments are made,This is what is left over after the company has met all its expenses and obligations.
4.
IRS -
Internal Revenue Service: the bureau of the Treasury Department responsible for tax collections
5.
Social Security Tax vs Medicare -
Provides benefits for retired workers and their dependents as well asfor the disabled and their dependents, health care for the aged; a federally administered system of health insurance available to persons aged 65 and over
6.
Pay Period -
The frequency with which payroll is processed and paychecks are issued.
7.
Payroll Clerk -
8.
Payroll System -
9.
Hourly Wage vs. Salary vs Commission -
A wage is a compensation workers receive in exchange for their labor, a fixed amount of money paid to a worker, usually measured on a monthly or annualbasis, not hourly, commission is a percentage of a sale.
10.
Bonus -
an additional payment (or other remuneration) to employees as a means of increasing output
11.
Overtime Pay -
means pay for overtime hours.
12.
Electronic Badge Reader -
13.
Tax Brackets -
Tax brackets are the divisions at which tax rates change in a progressive tax system
14.
W-4 vs W-2 -
Tax forms in the United States are used by taxpayers and tax-exempt organizations toreport financial information to the Internal Revenue Service, Tax forms in the United States are usedby taxpayers and tax-exempt organizations to report financial information to the Internal RevenueService
15.
Deductions –union dues, health insurance payments, life insurance payments, pensions, charitable -
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Audit -
audited account: an inspection of the accounting procedures and records by a trainedaccountant or CPA
17.
State Taxes vs Local Taxes -
State taxes are taxes that are imposed by state governments to fund stateprograms, same for local.
18.
Turbo Tax -
American software company that develops financial and tax preparation software andrelated services for small businesses
19.
Tax Deductions -
A tax deduction or a tax-deductible expense affects a taxpayer's income tax.
20.
H & R Block -
H&R Block is the leading tax preparation company in the United States
21.
IRA vs Roth IRA -
individual retirement account: a retirement plan that allows you to contribute alimited yearly sum toward your retirement; taxes on the interest earned in the account are deferred, ARoth IRA is an Individual Retirement Account (IRA) allowed under the tax law of the United States.
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Dependents -
A person who relies on a taxpayer for the provision of home and living expenses.
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Federal Unemployment Taxes -
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State Unemployment Taxes -
25.
Federal Tax Deposit Coupon -
26.
Form 940 vs Form 941 -
reports the employer's unemployment taxes, Form 941 is the IRS Employer'sQuarterly Federal Tax Return.
27.
Tax Day -
Tax Day is the common term for the day on which tax returns (statements about incometaxes) are due to the U.S. Federal Government
28.
Tax Extension -
29.
Social Security Numbers -
the number of a particular individual's Social Security account
30.
Flat Tax -
A system that taxes everyone at the same rate, regardless of their income bracket.
31.
Sales Tax -
a tax based on the cost of the item purchased and collected directly from the buyer
32.
Progressive Tax vs Regressive Tax -
any tax in which the rate increases as the amount subject totaxation increases, A regressive tax is a tax imposed in such a manner that the tax rate decreases asthe amount subject to taxation increases
33.
Tariff vs Quota -
duty: a government tax on imports or exports; "they signed a treaty to lower duties ontrade between their countries", proportional share assigned to each participant
34.
Excise Tax -
excise: a tax that is measured by the amount of business done (not on property or income from real estate)
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