Questions and Answers
What is an employment agency?
What does 'fee paid' refer to?
When the employer pays the fee to an employment agency.
What is a resume?
A short accounting of a job seeker's education and qualification for employment.
What is the purpose of Form W-4?
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What is a benefit in employment terms?
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What does it mean if someone is paid weekly?
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What is the definition of 'overtime hours'?
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What is meant by 'direct deposit'?
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What does 'gross pay' refer to?
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What is the minimum wage?
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What is 'worker's compensation'?
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What is 'unemployment insurance'?
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Study Notes
Employment Agency
- A business that connects job seekers with job openings and charges a fee for this service.
Fee Paid
- Employers cover the fee to employment agencies instead of the job seekers.
Resume
- A concise document summarizing a job seeker's education and qualifications for employment.
Form W-4
- An employee’s withholding allowance certificate that instructs how much tax to deduct from their paycheck.
Employee Benefits
- Additional compensation provided by employers, such as health insurance, paid vacation, and retirement plans.
Pay Schedules
- Weekly: 52 paychecks per year.
- Biweekly: 26 paychecks per year, paid every two weeks.
- Semimonthly: 24 paychecks per year.
- Monthly: 12 paychecks per year.
Direct Deposit
- An electronic transfer of payroll checks directly into a bank account.
Hourly Rate
- The fixed payment an employee receives for each hour worked.
Regular vs. Overtime Hours
- Regular hours refer to standard work hours.
- Overtime hours are any hours beyond regular hours, often paid at a higher rate.
Overtime Pay
- Overtime hourly rate is higher than the normal rate, typically at time and a half.
- Double time pay is twice the hourly rate for certain overtime situations.
Gross Pay
- Total earnings calculated as the sum of regular pay and any overtime pay.
Minimum Wage
- The lowest pay rate permitted by federal law for employees in the U.S.
Commission and Royalties
- Commission is a percentage earned on sales or transactions.
- Royalties are payments based on sales, commonly for authors and musicians.
Piece Workers and Piecework Rate
- Piece workers are paid based on the number of items produced.
- Piecework rate signifies the amount earned per item produced.
Insurance
- A guarantee of compensation for specified losses or illnesses, in exchange for a premium.
Paid Time Off
- Employers may offer paid vacation and paid holiday time as employee benefits.
Retirement Plans
- Options for employees to save for retirement, including pensions and 401(k) plans.
Stock Ownership Plans
- Allow employees to purchase or receive shares of company stock.
Worker's Compensation
- Assistance provided to employees injured while working.
Unemployment Insurance
- Government program offering benefits to eligible unemployed individuals through no fault of their own.
Health Care Coverage
- Family health care insures immediate family members.
- Individual health care covers only the individual.
Pension
- A retirement plan providing compensation after an employee retires.
Social Security
- A government insurance program offering income to retirees and those disabled, or providing survivors' benefits.
Taxes
- Federal Insurance Contributions Act (FICA) established social security insurance.
- FICA Tax includes contributions for social security and Medicare, split between employees and employers.
- Social Security Tax is based on a worker's income and the current tax percentage.
- Medicare tax is a fixed percentage of entire income, without a maximum limit.
Maximum Taxable Income
- The ceiling on income subjected to social security tax in a given year.
Social Security Number
- A unique identifier for U.S. residents, crucial for tracking social security taxes.
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Description
Test your knowledge on employment basics with these flashcards from Financial Algebra Chapter 6. This quiz covers important terms like employment agency, resumes, and W-4 forms essential for job seekers. Get ready to enhance your understanding of the employment process!
