Unit 3 finance - Human Capital experience Income Salary...

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- Human Capital - the knowledge and skills people obtain through education , experience , and training - Income - money made in a job ( wage ) - Hourly wage - how much you get paid an hour - Salary - a specific amount of money you get paid yearly given in incriments ( monthly , every other week , or twice a month ) - Commission - people who work in sales get a percentage of the amount they sell ( real - estate , car dealers ) - Bonus - an extra payment for a job well done ; usually based on performance - Benefits - anything you recieve From a job that isn't money ( health insurance , retirement plans ) - W - 4 - tax form an employee fills out to determine how many dependents they will claim on taxes - the more number of dependents the more money you Make - dependent - someone who you support financially - W - 2- Form - a year end statement from your employer showing how much you made and payed in taxes - tax deduction - certain expenses that the law allows you to deduct from your income for tax purposes - Federal income tax - a progressive tax that is taken out of a paycheck to fund the government ( funds the government ) : can come back to you - Progressive income tax - the more you make the higher percentage you pay in taxes - FICA - federal insurance contribution Act 1 Created to provide a safety net for the elderly , widowed , Orphans , and the disabled Created 2 pngramfsaqzgj > : doesn't come back to you 1) social security - when you reach retirement age you will relieve a certain amount of money per month from social security if you die before you reach retirement age your family gets the money until then are a certain age
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- Social Security ( continued ) - 6.2% from the worker t 6.2% from the employer = 12.4% social security each year - pay as you go system - today 's workers for today 's retirees 2) Medicare ( 1960 's ) - health care for old people - 1.45% from worker t 1.45% from the employer = 2.9% total - most States have state income tax - Gross pay - the amount of money you make before taxes are taken Out - net pay - the amount of income left after tax Is taken out - Medical insurance - health insurance - Retirement 401 - K - mutual fund retirement plan that gets deducted from
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