The List: Download Vocabulary

Flash Cards: Check comprehension

The Vocabulary:

Bartering – The mutual exchange of goods and services
Benefits – Something worth a monetary value that an employer provides to employees in addition to salary
Bonus – Money (or something else of value) given to an employee in addition to regular pay, often a reward for job performance
Business Profit – Gross business income minus operating expenses
Capital Gain – Profits from sale of assets, such as stocks, bonds or real estate that are not taxed until the asset is sold
Commission – A percentage of sales received as income
Compensation – Wages plus fringe benefits
Dividend – A distribution of money or stock that a corporation pays to stockholders
Fee – A pre-determined amount of money for a service performed
Gross Income – Income before payroll taxes are removed from the paycheck
Hourly Wage – The rate of pay for each hour worked during a regular workweek
Interest – Money paid for allowing someone else to use your money
Minimum Wage – The lowest hourly wage allowed by state or federal law
Net Pay – Take home pay after payroll taxes and voluntary deductions are removed
Non-Taxable Fringe Benefit – These benefits are not included in gross income. Examples include health & dental insurance or access to a company gym
Overtime – The rate paid during the workweek after an employee has worked 40 hours. This rate is usually 1-1/2 times the hourly wage
Pension – Income received from a retirement fund when the worker leaves the workforce and has reached retirement age
Perk – Compensation that is not wages. Perks make the job more enjoyable, convenient or help the worker perform on the job
Piece Rate – The type of pay workers receive when they earn money for each item produced
Rent Income –  Income received for the use of real property
Royalties –  Income earned when others use your original work
Salary – Money paid bi-weekly or monthly to an employee for performing a set of duties
Taxable Fringe Benefit – The value of these benefits must be included in your taxable income. Personal use of a company car is an example
Tip – A small gift of money, usually in return for a service; also called a gratuity
Transfer Payment – Income paid by government to individuals