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Questions and Answers
What is an employment agency?
What is an employment agency?
What does 'fee paid' refer to?
What does 'fee paid' refer to?
When the employer pays the fee to an employment agency.
What is a resume?
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?
What is the purpose of Form W-4?
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What is a benefit in employment terms?
What is a benefit in employment terms?
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What does it mean if someone is paid weekly?
What does it mean if someone is paid weekly?
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What is the definition of 'overtime hours'?
What is the definition of 'overtime hours'?
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What is meant by 'direct deposit'?
What is meant by 'direct deposit'?
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What does 'gross pay' refer to?
What does 'gross pay' refer to?
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What is the minimum wage?
What is the minimum wage?
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What is 'worker's compensation'?
What is 'worker's compensation'?
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What is 'unemployment insurance'?
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!
