What is Income?
Income is money received for work. There are 5 main ways to receive income.
Salary- Salary is received every year. Some benefits are getting insurance, company car, sell phone, and discounts without having to pay for it. You can also take sick and vacation days without them taking money away from your salary. The bad thing about it is that they can make you come and work on weekends and you can't complain about it at all
Commission- Get paid in a percentage of what you sell. One example is getting 10% of any car that you sell. Benefits are getting a huge amount of $ when you do sell, but the bad side is that if you don't sell anything you won't get money. There is also a combination of Salary and Commission, which is pretty self-explained. You're paid every year, but you also have a commission rate on what you sell at your job.
Tip- Getting paid in percentages of what the buyer pays. Tips are primarily used in restaurants. Waiters depend on tips to get paid, and the better they did, the higher the tip they receive.
Hourly- In hourly pay, the more you work, the more $ you get. There is a federal law (country law) that every state has to follow. This law is that the minimum wage (least amount of $ per hour a job can give you) is $7.25. The standard work week is 40 hours, so that's at least an average $290 a week. Any time spent working after the 40 hours in considered overtime, and the money you earn from that is 1.5 times the money you earn per hour normally. One example is that if you're paid $10 an hour, you earn $15 for every hour you work in overtime. Overtime is also called Time and a Half. Benefits for this is guaranteed money for every hour you work, and you'll get paid for any hours to get asked to work extra. Some employers also double your hourly rate if you're asked to work on holidays.
Bonuses- Given to workers as a way of showing that they're doing great at their job. Bonuses are usually added to their base salary.
IncomeTaxes
Once you receive your paycheck there's a tax on it that is given to the government. The easy saying is the more you make, the more they take. Different states have a different income tax, and some have no income tax at all.Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee
Gross Pay
Gross pay is the money you have earned before deductions and other things, such as health insurance, are taken out.
Net Pay
Net pay is the amount of money you have left after any deductions, like income taxes, are taken out. This is considered as your "take home pay."
Direct Deposit
Direct deposit is when the company or job you work for electronically sends you paycheck straight to your bank account. This means you won't have to receive and turn in a check, which saves you a lot of time. Direct deposit in considered easyierthan the traditional paycheck that companies give.
This video also gives you everything else
you need to know about income.
http://www.forbes.com/sites/kellyphillipserb/2016/01/05/10-things-you-absolutely-need-to-know-about-taxes/#3ad4886a22e9
Income is money received for work. There are 5 main ways to receive income.
Salary- Salary is received every year. Some benefits are getting insurance, company car, sell phone, and discounts without having to pay for it. You can also take sick and vacation days without them taking money away from your salary. The bad thing about it is that they can make you come and work on weekends and you can't complain about it at all
Commission- Get paid in a percentage of what you sell. One example is getting 10% of any car that you sell. Benefits are getting a huge amount of $ when you do sell, but the bad side is that if you don't sell anything you won't get money. There is also a combination of Salary and Commission, which is pretty self-explained. You're paid every year, but you also have a commission rate on what you sell at your job.
Tip- Getting paid in percentages of what the buyer pays. Tips are primarily used in restaurants. Waiters depend on tips to get paid, and the better they did, the higher the tip they receive.
Hourly- In hourly pay, the more you work, the more $ you get. There is a federal law (country law) that every state has to follow. This law is that the minimum wage (least amount of $ per hour a job can give you) is $7.25. The standard work week is 40 hours, so that's at least an average $290 a week. Any time spent working after the 40 hours in considered overtime, and the money you earn from that is 1.5 times the money you earn per hour normally. One example is that if you're paid $10 an hour, you earn $15 for every hour you work in overtime. Overtime is also called Time and a Half. Benefits for this is guaranteed money for every hour you work, and you'll get paid for any hours to get asked to work extra. Some employers also double your hourly rate if you're asked to work on holidays.
Bonuses- Given to workers as a way of showing that they're doing great at their job. Bonuses are usually added to their base salary.
IncomeTaxes
Once you receive your paycheck there's a tax on it that is given to the government. The easy saying is the more you make, the more they take. Different states have a different income tax, and some have no income tax at all.Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee
Gross Pay
Gross pay is the money you have earned before deductions and other things, such as health insurance, are taken out.
Net Pay
Net pay is the amount of money you have left after any deductions, like income taxes, are taken out. This is considered as your "take home pay."
Direct Deposit
Direct deposit is when the company or job you work for electronically sends you paycheck straight to your bank account. This means you won't have to receive and turn in a check, which saves you a lot of time. Direct deposit in considered easyierthan the traditional paycheck that companies give.
This video also gives you everything else
you need to know about income.
http://www.forbes.com/sites/kellyphillipserb/2016/01/05/10-things-you-absolutely-need-to-know-about-taxes/#3ad4886a22e9