⬛ CH 8 Consumer Economics ⬛

Week of October 19 2026

Salary

set amount of money earned by an employee per year

Piecework

wages based on the number of items or pieces produced

Minimum Wage

lowest hourly rate an employee may get paid

Vested

entitled to some or all money in the retirement plan

Direct Deposit

pay is electronically transferred

Net Pay

amount of pay an employee is left with after taxes and other deductions

Gross Pay

total amount of money earned for working during the pay period

Wages

employee earnings paid by the hour, day or item

Overtime

working excess of 40 hours per week

Dependent

someone who is supported by a taxpayer’s income

Allowances

factors that affect the amount of income tax withholding

Itemized Deductions

amounts actually spent on tax-deductible expenses

Tips

money given to an employee by customers in exchange for a service

Standard Deduction

set amount that the IRS allows without listing actual expenses

Tax Credit

subtracted directly from the amount of tax owed

Commission

fixed percentage of profit given to an employee in exchange for making a sale

Tax Deduction

reduces the amount of income that is taxed