Chapter 12

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

The payment of an employee's net pay using electronic funds transfer

A method of paying an employee based on the amount of sales the employee generates

A federal tax paid for old-age, survivors, and disability insurance

A qualified retirement plan sponsored by an employer

A deduction from total earning for each person legally supported by taxpayer, including the employee.

The maximum amount of gross earnings on which a tax is calculated

A retirement plan approved by the IRS

A computerized cash payment system that transfers funds without the use of checks, currency, or other paper documents.

The total earning paid to an employee after payroll taxes and other deducations.

A qualified retirement plan that allows tax-free withdrawls from the account.

A federal tax paid for hospital insurance

Business use payroll records to inform employees of thier annual earning and to prepare payroll reports for the government.

Qualified retirement plans are approved by an act of Congress

The first task in preparing a payroll is to determine the number of days worked by each employee