martes, 21 de mayo de 2013

Benefits and taxes - Terms


Deductions

The money an employer takes from an employee’s salary to cover taxes and benefits.

Gross pay

Pay or wages before deductions.

Disposable income

The amount of money left from gross income after compulsory deductions have been taken.

Net pay

Money available to spend after compulsory and voluntary deductions are taken off gross pay.

Discretionary income

The amount of money left after all compulsory deductions are taken from gross pay and after expenditures, such as taxes, are paid for. This money is available for a person to spend as they wish.

Income tax

An amount of money the federal government requires from those who earn income to pay to it. It is used to pay for government and government programs.

Total income

Income from all sources.

Taxable income

Net income of an individual or a for-profit organizations.

Tax credit

An amount of money that can be deducted from tax payable.

Property tax

The amount of tax property owners pay. It is used to cover the cost of municipal services.

Sales tax

An amount of money paid on retail purchases.

Mortgage

Loan to buy a house or business.

Down payment

A sum of money paid at the time of a purchase, usually on a large purchase (house, car).



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