Income and Paychecks flashcards

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What is meant by “Wage” in this lesson?Earning income: A wage is compensation for work, commonly linked to hours or output.
What is meant by “Salary” in this lesson?Earning income: A salary is compensation stated for a period under employment terms.
What is meant by “Self-employment income” in this lesson?Earning income: Self-employment income comes from business activity and requires accounting for relevant expenses.
What is meant by “Variable income” in this lesson?Earning income: Variable income changes across pay periods.
What is meant by “Employee benefit” in this lesson?Earning income: A benefit is compensation or support beyond direct wages under stated eligibility rules.
What is meant by “Income timing” in this lesson?Earning income: Income timing specifies when money becomes available.
What is meant by “Gross pay” in this lesson?Gross versus net pay: Gross pay is earnings before payroll deductions.
What is meant by “Net pay” in this lesson?Gross versus net pay: Net pay equals gross pay minus applicable deductions.
What is meant by “Tax withholding” in this lesson?Gross versus net pay: Withholding sends estimated tax payments from earnings under applicable rules.
What is meant by “Benefit deduction” in this lesson?Gross versus net pay: A benefit deduction pays an employee's share of an elected or required benefit.
What is meant by “Payroll tax” in this lesson?Gross versus net pay: Payroll taxes apply to specified earnings under jurisdiction-specific rules.
What is meant by “Pre-tax versus post-tax” in this lesson?Gross versus net pay: Deduction tax treatment depends on the benefit and applicable rules.
What is meant by “Pay period” in this lesson?Reading a sample pay statement: A pay period is the interval for which earnings are calculated.
What is meant by “Hourly earnings” in this lesson?Reading a sample pay statement: Straight-time hourly earnings equal eligible hours multiplied by the stated rate.
What is meant by “Overtime condition” in this lesson?Reading a sample pay statement: Overtime eligibility and rates depend on applicable law and employment classification.
What is meant by “Year-to-date total” in this lesson?Reading a sample pay statement: A year-to-date total accumulates amounts from the beginning of the reporting year.
What is meant by “Pay reconciliation” in this lesson?Reading a sample pay statement: Reconciliation compares the statement with work and payment records.
What is meant by “Payroll discrepancy” in this lesson?Reading a sample pay statement: A discrepancy is a mismatch requiring verification and appropriate correction.