BUDGET AND FINANCE VOCABULARY RELATIONSHIPS AND FAMILY MRS

BUDGET AND FINANCE VOCABULARY RELATIONSHIPS AND FAMILY MRS. CRUSAN

SALARY �A SET AMOUNT OF MONEY EARNED BY AN EMPLOYEE PER YEAR OR OTHER FIXED LENGTH OF TIME.

WAGES � EMPLOYEE EARNINGS THAT ARE PAID BY THE HOUR, DAY, OR ITEM. IF YOU WORK FOR A WAGE OF $10 PER HOUR, YOUR PAYCHECK WOULD BE $10 MULTIPLIED BY THE NUMBER OF HOURS YOUR WORKED DURING THE PAY PERIOD.

PIECEWORK � WORK FOR WHICH WAGES ARE BASED ON THE NUMBER OF ITEMS OR PIECES PRODUCED. PIECEWORK USUALLY INVOLVES THE MANUFACTURE OR ASSEMBLY OF ITEMS

COMMISSION �A FIXED PERCENTAGE OR AMOUNT OF PROFIT GIVEN TO AN EMPLOYEE IN EXCHANGE FOR MAKING A SALE. **SOME EMPLOYEES EARN COMMISSION IN ADDITION TO AN HOURLY WAGE OR SALARY, SOME MAKE JUST STRAIGHT COMMISSION.

MINIMUM WAGE � THE LOWEST HOURLY RATE AN EMPLOYER MAY LEGALLY PAY MOST WORKERS. THE FIGURE IS RAISED PERIODICALLY TO HELP WORKERS KEEP UP WITH INFLATION **CALIFORNIA- $9. 10 ($10 ON 1/1/16) **FEDERAL - $7. 25

OVERTIME � WORK IN EXCESS OF 40 HOURS PER WEEK IS CLASSIFIED AS OVERTIME. MOST TIMES PAID AS 1. 5 TIMES THE EMPLOYEE’S REGULAR RATE OF PAY. **USUALLY NOT PAID TO SALARIED EMPLOYEES

VESTED � EMPLOYEE BECOMES ENTITLED TO SOME OR ALL OF THEIR MONEY IN THEIR RETIREMENT PLAN WHEN LEAVING A COMPANY. EACH COMPANY SETS THE TIMELINE FOR HOW LONG IT TAKES TO BECOME VESTED.

DIRECT DEPOSIT � PAY IS ELECTRONICALLY TRANSFERRED DIRECTLY INTO THE RECIPIENT'S BANK ACCOUNT. INSTEAD OF AN ACTUAL PAYCHECK EMPLOYEES RECEIVE A RECEIPT OR STATEMENT WITH THE AMOUNT DEPOSITED.

GROSS PAY � THE TOTAL AMOUNT OF MONEY EARNED FOR WORK DURING THE PAY PERIOD. THIS IS THE AMOUNT BEFORE ANY DEDUCTIONS.

DEDUCTION � ANYTHING (AMOUNT OF MONEY) THAT IS SUBTRACTED FROM GROSS PAY. **THESE MAY INCLUDE FIXED DEDUCTIONS, FLEXIBLE DEDUCTIONS AND/OR BENEFITS.

FIXED DEDUCTION � TYPE OF DEDUCTION WHERE YOU HAVE NO CHOICE IF IT IS DEDUCTED FROM YOUR PAY OR NOT. ◦ FEDERAL INCOME TAX, STATE INCOME TAX, SOCIAL SECURITY/MEDICARE, ETC.

FLEXIBLE DEDUCTION � SOMETIMES CALLED “OTHER DEDUCTIONS” THESE ARE DEDUCTIONS AN EMPLOYEE MAY OR MAY NOT CHOOSE TO HAVE TAKEN OUT OF THEIR PAY. ◦ CHARITY, 401 K, SAVINGS, ETC.

BENEFITS � SOMETHING IN ADDITION TO YOUR SALARY OR WAGES, THAT IS OFFERED AND MOST OFTEN PAID FOR BY YOUR EMPLOYER. ◦ ◦ ◦ MEDICAL, DENTAL, AND/OR VISION PENSION OR MATCHING 401 K CONTRIBUTIONS EDUCATIONAL EXPENSES PAID HOLIDAY AND/OR SICK LEAVE MATERNITY LEAVE AND/OR CHILD CARE

NET PAY � THE AMOUNT OF PAY AN EMPLOYEE IS LEFT WITH AFTER TAXES AND OTHER DEDUCTIONS ARE SUBTRACTED FROM GROSS PAY. NET PAY IS ALSO CALLED “TAKE HOME PAY” BECAUSE IT IS THE AMOUNT OF MONEY AN EMPLOYEE ACTUALLY RECEIVES.

FIXED INCOME � INCOME THAT DOESN’T VARY OVER TIME. INVESTMENT, RETIREMENT, SOCIAL SECURITY.

FICA(SOCIAL SECURITY) � FEDERAL INSURANCE CONTRIBUTION ACT. CREATED TO ELIMINATE HARDSHIP ON THE AGED, DISABLED & SURVIVORS, BY PROVIDING A MINIMUM INCOME FOR ALL COVERED BY THE PROGRAM.

MEDICARE � GUARANTEES ACCESS TO HEALTH INSURANCE FOR CITIZENS 65 AND OVER WHO HAVE WORKED AND PAID INTO THE SYSTEM. ◦ ALSO FOR THOSE WHO ARE PERMANENTLY DISABLED, RENAL FAILURE, ALS.

ALLOWANCES � FACTORS THAT AFFECT THE AMOUNT OF INCOME TAX WITHHOLDING. THE MORE ALLOWANCES YOU CLAIM, THE LESS TAX YOUR EMPLOYER WILL TAKE OUT. ◦ EXAMPLE ON BOARD

DEPENDENT � SOMEONE WHO IS SUPPORTED BY A TAXPAYER’S INCOME. ◦ USUALLY YOUR CHILDREN THROUGH AGE 23, BUT CAN BE OTHER RELATIVES SUCH AS DISABLED CHILDREN/RELATIVES, ELDERLY PARENTS, ETC.

TAX DEDUCTION � REDUCES THE AMOUNT OF INCOME THAT IS TAXED. IF YOU USE PART OF YOUR INCOME FOR CERTAIN PURPOSES, SUCH AS GIVING TO CHARITY OR PAYING INTEREST ON A HOME LOAN, YOU DON’T OWE TAXES ON THAT INCOME.

ADDITIONAL INFORMATION � PAGE ◦ ◦ 195: EMPLOYMENT CLASSIFICATIONS FULL-TIME PART-TIME TEMPORARY CONTRACT