2 PaydayPay periodThe length of time for which an employee’s wages are calculated. Usually weekly, biweekly, semimonthly, or monthly pay periods.Many companies delay pay for a week or a full pay period. The delay allows the company to accurately pay employees for all the time they worked during the pay period.
3 PaychecksMost companies pay by check to have a permanent record of their expenses.Most paychecks have a stub attached to it.Gross pay: the total amount of money earned during a pay periodNet pay: the amount of money left after all deductions have been taken from the gross pay
4 Deductions Federal income taxes State income taxes Social security taxesMedicare taxesHealth insurance contributionsUnion duesSaving plansPensionsUniformsLoansCharity contributions
5 Paperwork W-4 Form Dependent Required each time you start with a new employerThe form is called Employee’s Withholding Allowance CertificateThe numbers you put on here determines how much of your pay should be withheld for taxesDependentA person, such as a child or nonworking adult, who relies on a taxpayer for financial support
6 IRS aka Internal Revenue Service W-2 form is the method employers use to report your income and taxes to you and the IRSW-2 is called the Wage and Tax StatementW-2 shows how much a worker was paid and how much income was withheld for taxes in a given yearIRS—the agency that enforces federal tax laws and collects taxesIncome tax—tax on all form of earningsFICA—Federal Insurance Contributions Act, allows the federal government to reserve a percentage of a paycheck for social security tax
7 Filing a Federal Tax Return April 15 is the usual filing deadlineIRS does not send out tax return forms in the mail anymoreThe simplest form is the 1040EZYou may complete your own tax returnIrs.gov has all rules and forms listed on the websiteLine 1 is W-2 incomeLine 2 is interest incomeThere are penalties for filing late (past April 15)Audits are not necessarily cause for panic
8 Tax exempt states Alaska South Dakota Nevada Texas Florida Washington WyomingLimited income taxTennesseeNew Hampshire