CH.2 INCOME, BENEFITS, & TAXES

Benefits

Forms of pay other than salary and wages

Entrepreneur

A person who takes the risk if bey h self employed and owning a business

Exemption

A person claimed as a dependent on a tax return

Gross Pay

Your total salary or wages earned during the pay period

Interest

Money earned on saving accounts and other funds (CD, US Saving bonds)

Minimum wage

The lowest pay rate allowed by law

Unearned Income

Money received from sources other than working in a job

Net Pay

(Take- Home Pay) amount of your paychecks after deductions

Sick Leave

Paid time away from work due to illness

Transfer Payments

Money and Benefits received form local, state, or federal government

Use Taxes

Based on the use of good and services provided by the government

Lifestyle Business

business (like family) that will not go on to become a publicly held company

Form W-2

Form used to report taxable income a worker received during the calendar year

Form 1040

2 page form that allows more options for income and deductions to be entered

Medicare

Health insurance for people 65 or older

Medicaid

Health Insurance for people with low income las and limited resources

Worker’s Compensation

Insurance plan that pays medical and disability benefits to employees who are injured or contract disease on the job