Paycheck Essentials

question

payroll withholdings/deductions
answer

amounts subtracted from gross income
question

withholding taxes
answer

money deducted from employee wages for federal, state, and local taxes
question

disability benefits
answer

for workers who are disabled and unable to work
question

retirement plan
answer

the amount an employee contributed each pay period to a retirement plan
question

net income
answer

gross income less deductions, sometimes called \”take home pay\”
question

allowance
answer

reduces the amount of withholding taxes
question

medicare
answer

hospital insurance for the disabled and retired
question

Form W4
answer

an employee’s withholding allowance certificate that shows the number of allowances claimed for federal and state income taxes
question

taxes
answer

fees for the support of government required to be paid by people and businesses
question

dependent
answer

a person who relies on another person for support (especially financial support)
question

Form I9
answer

employment eligibility verification; documentation must be provided to verify that the person is eligible to work in the United States
question

paper paycheck
answer

payment given with a paper check with a paycheck stub attached
question

paycheck stub
answer

a form attached to a paycheck that lists important information
question

direct deposit
answer

an automatic deposit of a paycheck without having to take a physical check to the bank
question

payroll card
answer

prepaid card instead of a paper check or direct deposit
question

pay period
answer

the amount of time over which an employee is paid
question

gross income
answer

the total amount of income from wages before any payroll deductions
question

FICA
answer

Federal Insurance Contributions Act: has 2 parts, Social Security and Medicare
question

social security tax
answer

a federal tax paid for old-age, survivors, and disability insurance
question

year to date
answer

totals all of the deductions which have been withheld from January 1 to the last day of the pay period

Get instant access to
all materials

Become a Member