Module 3 Vocab

Allowance

the number that you calculate on the w-4 form that reduces the amount of taxes withheld from your paycheck

apprenticeship

a combination of classroom instruction and on-the-job training

aptitude

a natural physical or mental ability; something you are good at

Benefits

part of an employee's compensation over and above wages or salary

Bonus

a form of incentive pay given by an employer to reward an employee for going above and beyond the job requirements

Career

a set of related work experiences that are built over a lifetime

commission

Income earned as a percentage of a sale made by an employee; also a percentage of sales paid to a seller.

cover letter

a personal business letter that introduces you to a potential employer

Deductions

amounts that are subtracted from your paycheck

derived demand

A condition where the demand for resources, including labor, comes from, or is derived from, the demand for the goods and services that are produced from these resources.

Dividends

distribution of the after-tax earnings that are distributed to company's shareholders

Earned Income

all the taxable income and wages you get from working

Exempt(tax)

not subject to be taxed, not included for tax purposes; w-4 status for individuals who had zero federal tax liability for the previous year and who expect to have zero federal tax liability for the coming year

FICA

an abbreviation for the Federal Insurance Contributions Act which requires two deductions from pay for Social Security and Medicare taxes

Garnishment

A court ruling that requires that money be deducted from a person's paycheck involuntarily in order to pay a debt.

Gross pay

the total amount of money earned before deductions or taxes are taken out of your paycheck

human capital

the knowledge and skills a person possesses

Incentives

an action or reward that motivates one to act a certain way

Inheritance

money or property that is left to you after someone dies

Interest

Money paid to you by a financial institution when you deposit funds there

Internship

a pre-professional work experience that can provide a student, recent graduate, or career changer with the opportunity to gain experience in a particular career field

Interview

a meeting with an employer to discuss your qualifications for employment

Job

a work experience or activity

Market value

the price a seller can expect to receive for a product in a competitive marketplace.

Net pay

What remains after voluntary and required deductions are subtracted from gross pay; your paycheck amount.

Overtime

Hours worked above 40 hours in a week, which must be compensated at 1.5 the hourly salary.

Piece rate

a method of pay where you receive payment based on the number of items produced correctly in a certain period of time

Productivity

a measure of the amount of output based on the amount of inputs used

R�sum�

a document that describes your work experience, education, abilities, interests, and contact information for people who can attest to your work ethic and character

return on investment

the percentage of the total cost of purchasing an investment and the profit made from selling that investment

salary

the price of labor in a flat amount, usually quoted monthly or annually and is typically determined by the supply of and demand for human capital

self-assessment

analyzing your own likes, dislikes, wants, needs, skills, and abilities to discover what career will best fit you

Tips

an amount paid to an employee by a customer based on how well he or she did a job

Unearned Income

money given to a person without the person having to work to receive it

Wage

income received from working, either paid hourly or by salary

W-4 Form

a form employment form required by law that you complete so that your employer can determine the proper amount to withhold from your paycheck