Personal finance ch2

Overtime Pay

Usually paid at 1.5 times the regular hourly rate and added to regular pay.

Required Deductions

Amounts that must be taken out of your paycheck, such as taxes.

Optional Deductions

Amounts you choose to have taken out of your paycheck, such as retirement savings.

Allowances

Information used on a tax withholding form to help determine how much income tax is withheld.

Employer Tax Contributions

Employers pay matching amounts for Medicare and Social Security taxes.

Paid Holiday

A holiday when employees receive pay; employees who work may receive double or more than their regular rate.

Sick Days

Usually 3–10 paid days off per year for illness.

Vested

Entitled to the full retirement account benefits specified by the plan.

Telecommuting

Working away from the workplace and communicating with coworkers using technology.

Flextime

A schedule that allows employees to choose their working hours within certain limits.

Compressed Workweek

A schedule that fits 40 hours of work into fewer than five days.

Labor Union

A group of workers organized to protect employees' interests.

Collective Bargaining

Negotiating a work contract for union members.

Strike

When workers refuse to work to try to reach an agreement with their employer.

Professional Organization

A group of people in a particular occupation that requires training and specialized skills.

Standard Full-time work week

40 hours per week, usually eight hours a day for five days.

Gross Pay

Total earnings before deductions.

Salaried Worker

An employee who earns a fixed annual amount of pay.

Social Security Tax

6.2% of employee earnings up to the annual wage limit.

Take-home pay

About 65–70%.

Legally Required Contributions

Employers must contribute matching amounts toward covered employees' Social Security and Medicare taxes.

Bonus

Incentive pay given for good work, years of service, or company performance.

Core Time Period

The time of day when all employees must be working.

Industrial Union

A union made up of workers in a particular industry.

Benefits

Extra rewards employees receive in addition to regular pay, such as insurance and paid vacation.

Incentive

Something offered to encourage better performance.

Lobbying

Trying to influence public officials to pass laws that benefit a group or profession.

Net Pay

The amount of pay left after deductions.

Profit Sharing

A plan that allows employees to receive part of a company's profits.

Rotation

A job design in which employees switch between different tasks.