Federal Income Tax Definition & Example | InvestingAnswers
Oct 30, 2020 · What is Federal Income Tax? Federal income tax is a tax on a range of certain kinds of income. Taxpayers generally calculate and pay federal income tax by filing an IRS Form 1040 by April 15 of each year.
Earned Income Definition & Example | InvestingAnswers
Aug 12, 2020 · Let's assume John Doe quits that job and becomes a server at ABC Restaurant. He makes $9 an hour plus tips. Last year, he earned $30,000 in hourly wages and $11,000 in tips. John's earned income is $30,000 + $11,000 = $41,000. Why Does Earned Income Matter?
Wage Expense Definition & Example - InvestingAnswers
Oct 1, 2019 · Conversely, smaller companies that follow the rules of cash accounting report only those wages actually paid during a period. Why Does a Wage Expense Matter? It's important to note that for manufacturing companies, the wage expense figure specifically excludes compensation paid to employees with a direct manufacturing role.
Wage-Price Spiral Definition & Example - InvestingAnswers
Oct 1, 2019 · The higher wages put more money in their hands, which in turn drives the prices of goods and services even higher. Why Does a Wage-Price Spiral Matter? The wage-price spiral is a central part of many economic controversies and is a big part of Keynesian economic theory.
Wage-Push Inflation Definition & Example - InvestingAnswers
Oct 1, 2019 · The higher wages put more money in their hands, which in turn drives the prices of goods and services even higher. Why Does Wage-Push Inflation Matter? Wage-push inflation is a central part of many economic controversies and is a big part of Keynesian economic theory.
Income Definition & Example - InvestingAnswers
Oct 19, 2020 · Wages are the most common kinds of income. 'Unearned income,' such as capital gains, is taxed at different rates, as are dividends. Interest income is sometimes exempt from ordinary income taxes (as in the case of most municipal bond investments).
Household Employee Definition & Example - InvestingAnswers
Oct 1, 2019 · According to the IRS, wages paid to a spouse, children under 21, a parent, or any employee under the age of 18 are usually not subject to the tax. It is important to note, however, that independent contractors usually do not fall under the IRS definition of a household employee. So, if Sally Smith runs her own dog-walking business or TV repair ...
Wage Assignment Definition & Example - InvestingAnswers
Aug 28, 2020 · A wage assignment refers to a forced payment of a financial obligation via automatic withholding from an employee's pay.
Accounts Receivable | Examples & Definition - InvestingAnswers
Jan 8, 2021 · The Advantages and Disadvantages of Accounts Receivable. Using accounts receivable has several advantages: Using payment terms and invoicing customers is a standard business practice and is thus favorably received.
FLSA -- Fair Labor Standards Act -- Definition & Example
Oct 1, 2019 · How Does the Fair Labor Standards Act (FLSA) Work? The FLSA is enforced by the U.S. Department of Labor. The FLSA establishes a federal minimum wage and provides the standards for overtime pay (currently 150% of a worker's regular wage rate for all hours over 40 in a …