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Paycheck and Pay Glossary

218 terms used on this site, explained in plain English: pay and pay stubs, federal and state taxes, Social Security and Medicare, Form W-4, deductions, overtime law, self-employment and wage data. Figures are for 2026 and come from the same official sources as our calculators.

218 terms

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1099 tax calculator
Our calculator for self-employment tax, income tax and quarterly estimated payments. 1099 Tax Calculator This site
10th percentile
The wage 10% of workers earn less than; the bottom of the typical range. Salary by job Wage data
2,080 hours
The hours in a full-time year (40 x 52). Multiply an hourly wage by 2,080 to get yearly pay; the Bureau of Labor Statistics uses the same figure. Hourly to salary chart Pay basics
30% rent rule
The guideline that housing costs, including utilities, should take no more than 30% of income. Minimum wage by state Wage data
401(k)
An employer retirement plan. Traditional contributions lower federal (and most state) income tax but not Social Security or Medicare. Salary Paycheck Calculator Deductions and benefits
403(b)
A retirement plan like a 401(k) for public schools, hospitals and nonprofits. Deductions and benefits
457(b)
A retirement plan like a 401(k) for state and local government employees. Deductions and benefits
7(k) work period
A rule letting public agencies pay police and firefighters overtime over a 7- to 28-day period instead of a 40-hour week. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
8 and 80 system
A rule letting hospitals and residential care facilities pay overtime after 8 hours a day or 80 hours in a 14-day period, by agreement. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
90th percentile
The wage 90% of workers earn less than; the top 10% earn more. Salary by job Wage data

A

Additional Medicare Tax
An extra 0.9% Medicare tax on wages over $200,000 in a year. Employers start withholding it once your pay from them passes $200,000. Why Your Paycheck Gets Bigger After the Social Security Cap Social Security and Medicare
Adjusted gross income (AGI)
Your total income minus certain adjustments, such as half of self-employment tax. Many limits and phase-outs are based on it. 1099 Tax Calculator Federal income tax
Administrative exemption
The FLSA exemption for office work tied to running the business, with independent judgment. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Aggregate method
Withholding on a bonus by adding it to regular pay, figuring withholding on the total, then subtracting what was withheld from the regular pay. Bonus Tax Calculator Federal income tax
Allowances
The old W-4 system (before 2020) for setting withholding. The current form has no allowances; some states still use them. Calculators by state Forms
Annualized pay
A paycheck multiplied by the number of paychecks in a year, used to figure withholding as if you earned that amount every period. How it works Federal income tax
Annual-only wage
A BLS figure published only as yearly pay, for jobs not usually paid hourly or worked full time all year, such as teachers and pilots. Elementary School Teacher salary Wage data
Annual salary
A fixed yearly amount of pay, divided across your paychecks for the year. Salary Paycheck Calculator Pay basics

B

Benefits
Non-wage compensation such as health insurance, retirement contributions and paid leave. Deductions and benefits
Biweekly pay
Being paid every two weeks: 26 paychecks a year, so two months each year have three paydays. Biweekly vs Semi-Monthly Pay Pay basics
Bonus
A one-time or periodic payment on top of regular pay. For withholding, the IRS treats it as supplemental wages. Bonus Tax Calculator Pay basics
Bonus tax calculator
Our calculator for a bonus after tax under both IRS withholding methods. Bonus Tax Calculator This site
Bureau of Labor Statistics (BLS)
The federal agency that publishes US wage and employment data, the source for this site's job and wage pages. Salary by job Wage data
Business expenses
Ordinary and necessary costs of running a business, such as supplies and mileage, subtracted from 1099 income to get profit. 1099 Tax Calculator Self-employment

C

Cafeteria plan (Section 125)
An employer plan that lets you pay for health insurance, FSAs and some other benefits with pre-tax pay. How to Read a Pay Stub Deductions and benefits
Car loan interest deduction
A federal deduction for interest on a loan for a new personal vehicle assembled in the US, for 2025 to 2028, with limits. No Tax on Overtime Calculator Federal income tax
Cash wage
The hourly pay a tipped employee gets from the employer before tips. Under federal law it is at least $2.13 an hour. Minimum wage by state Pay basics
Catch-up contribution
Extra retirement plan contributions allowed for people 50 and older. Deductions and benefits
Child support withholding
A garnishment of wages to pay court-ordered child support. Deductions and benefits
Child Tax Credit
A federal credit of up to $2,200 per qualifying child under 17. It lowers withholding when entered in Step 3 of Form W-4. W-4 Calculator Federal income tax
Commission
Pay based on sales. It is taxed as wages; employers may treat it as supplemental wages for withholding. Bonus Tax Calculator Pay basics
Commuter benefits
Pre-tax deductions for transit passes and work parking, up to monthly limits. Paycheck calculator Deductions and benefits
Computer employee exemption
The FLSA exemption for skilled computer work, paid at least $27.63 an hour or the standard salary level. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Cost burden
HUD's term for spending more than 30% of income on housing; above 50% is severe cost burden. Minimum wage by state Wage data

D

Daily overtime
Overtime for hours over a daily limit, such as 8 hours. Federal law does not require it; some states do. Calculators by state Wage and overtime law
Deductions Worksheet
The W-4 page 4 worksheet that adds up deductions for Step 4(b). No Tax on Overtime Calculator Forms
Dependent care FSA
A pre-tax account for child or dependent care costs. Paycheck calculator Deductions and benefits
Direct deposit
Pay sent straight to your bank account. Many states limit whether an employer can require it. Calculators by state Pay basics
District of Columbia
Washington, DC, which sets its own income tax and minimum wage like a state. District of Columbia paycheck calculator State and local
Double time
Pay at 2 times your regular rate, required in some cases by state law (for example California after 12 hours in a day) or by contract. Overtime Calculator Wage and overtime law

E

Earned Income Tax Credit (EITC)
A refundable federal credit for workers with low to moderate earnings, larger with qualifying children. It is paid when you file. Minimum wage by state Federal income tax
Earnings
The pay lines on a pay stub: regular, overtime, holiday, paid time off, bonus and so on. How to Read a Pay Stub Pay basics
Effective tax rate
Your total tax divided by your income: the average rate you actually pay, lower than your top bracket. How Much Tax Is Taken Out of My Paycheck? Federal income tax
Elective deferral
The part of your pay you choose to put into a 401(k) or similar plan. Deductions and benefits
Employee
A worker whose employer controls how the work is done and withholds taxes from pay. Employees get a W-2. 1099 vs W-2: How Much More a Contractor Needs to Earn Pay basics
Employer match
Money your employer adds to your retirement plan when you contribute. It is not taken out of your pay. Deductions and benefits
Employer match (FICA)
The employer's equal share of Social Security and Medicare: another 7.65% of wages, not taken out of your pay. 1099 vs W-2: How Much More a Contractor Needs to Earn Social Security and Medicare
Employment estimate
The BLS estimate of how many jobs exist in an occupation and area. Salary by job Wage data
Equal pay
Laws requiring equal pay for substantially equal work regardless of sex, and in some states other characteristics. Wage and overtime law
Estimate
A figure worked out from the rules and your inputs. Your employer's payroll system can differ slightly due to rounding or other inputs. Disclaimer This site
Estimated tax payments
Tax paid four times a year by people whose tax is not covered by withholding, such as contractors. Figured on Form 1040-ES. 1099 Tax Calculator Self-employment
Excess Social Security
Social Security withheld above the yearly maximum when you work two jobs. You get it back as a credit on your tax return. Why Your Paycheck Gets Bigger After the Social Security Cap Social Security and Medicare
Exempt employee
An employee not covered by FLSA overtime rules because of job duties and pay, or a specific exemption. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Exempt from withholding
Claiming no federal income tax withholding, allowed only if you owed no tax last year and expect none this year. It must be renewed each year. Form W-4 2026: Step-by-Step Walkthrough Forms

F

Fair Labor Standards Act (FLSA)
The federal law setting the minimum wage, overtime pay and child labor rules for most US workers. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Federal income tax
Tax the IRS collects on your income. Employers withhold it from each paycheck based on your Form W-4; the final amount is settled on your tax return. Paycheck calculator Federal income tax
Federal minimum wage
$7.25 an hour, unchanged since July 24, 2009. It applies wherever a state's rate is lower. Minimum wage by state Wage and overtime law
Federal withholding
Federal income tax withheld from a paycheck, figured from your W-4 and the IRS tables in Publication 15-T. Paycheck calculator Federal income tax
FICA
The Federal Insurance Contributions Act: Social Security and Medicare taxes, withheld from employees and matched by employers. Paycheck calculator Social Security and Medicare
Filing status
Your category on the tax return (single, married filing jointly, married filing separately, head of household), which sets brackets and the standard deduction. W-4 Calculator Federal income tax
Final paycheck
Your last paycheck when you leave a job. Some states set deadlines for it; federal law only requires payment by the next regular payday. Calculators by state Pay basics
Flat rate method
Withholding a flat 22% of federal income tax from supplemental wages such as a bonus, regardless of the W-4. Bonus Tax Calculator Federal income tax
Flat tax
An income tax with a single rate for all income, used by several states. Calculators by state State and local
Flexible Spending Account (FSA)
A pre-tax account for medical costs, generally use-it-or-lose-it within the plan year. Paycheck calculator Deductions and benefits
Form 1040
The federal individual income tax return. Federal income tax
Form 1040-ES
The IRS form and worksheet for figuring and paying estimated tax. 1099 Tax Calculator Self-employment
Form 1099-K
A form from payment platforms reporting payments you received through them. 1099 Tax Calculator Forms
Form 1099-NEC
The form a business sends to an independent contractor it paid more than the IRS reporting threshold during the year, showing nonemployee pay. 1099 Tax Calculator Forms
Form W-2
The yearly wage and tax statement your employer sends by January 31, showing pay and taxes withheld. How to Read a Pay Stub Forms
Form W-2c
A corrected W-2, issued when the original had a mistake. Overtime Calculator Forms
Form W-4
The Employee's Withholding Certificate you give your employer to set your federal income tax withholding. W-4 Calculator Forms
Full-time year
On this site, 2,080 hours: 40 hours a week for 52 weeks. It is the standard used to turn hourly pay into yearly pay. Hourly to salary chart Pay basics
FUTA
The Federal Unemployment Tax Act tax, paid by employers only, not withheld from your pay. Social Security and Medicare

G

Garnishment
A court or government order requiring your employer to withhold part of your pay for a debt, such as child support or taxes. Paycheck calculator Deductions and benefits
Gig work
Short jobs or tasks paid through apps or platforms, usually as an independent contractor. 1099 Tax Calculator Pay basics
Graduated tax
An income tax with rates that rise across brackets, like the federal tax. Calculators by state State and local
Gross pay
Your pay before any taxes or deductions are taken out: salary for the period, or hours times your rate, plus overtime, bonuses and other earnings. Paycheck calculator Pay basics
Gross-up
Paying a larger amount before taxes so that a set amount is left after taxes, often used for bonuses or relocation payments. Gross-Up Calculator Pay basics

H

Half of self-employment tax deduction
Self-employed people deduct half their self-employment tax from income, like the employer's share an employee never pays tax on. 1099 Tax Calculator Self-employment
Head of household
A filing status for unmarried people who pay more than half the cost of a home for a qualifying person. W-4 Calculator Federal income tax
Health insurance premium
Your share of the cost of employer health coverage. Through a cafeteria plan it is pre-tax for income tax, Social Security and Medicare. Paycheck calculator Deductions and benefits
Health Savings Account (HSA)
A tax-advantaged account for medical costs, paired with a high-deductible health plan. Payroll contributions are usually pre-tax for all federal taxes. Paycheck calculator Deductions and benefits
Hourly paycheck calculator
Our calculator for pay by the hour, with overtime and multiple rates. Hourly Paycheck Calculator This site
Hourly rate
The amount you earn for each hour worked. A $25 hourly rate is $52,000 a year at 40 hours a week for 52 weeks. Hourly to salary chart Pay basics
Hourly to salary
Turning an hourly wage into yearly pay by multiplying by the hours in a year, usually 2,080. Hourly to salary chart Wage data
Hourly wage
Pay per hour worked. Gross pay is the rate times the hours, with overtime hours paid at a higher rate. Hourly Paycheck Calculator Pay basics
HUD
The US Department of Housing and Urban Development, source of the 30% housing cost guideline. Sources Wage data

I

Independent contractor
A self-employed worker paid for results, not as an employee. No taxes are withheld; they pay self-employment tax and get a 1099. 1099 Tax Calculator Pay basics
Inflation indexing
Adjusting a figure each year for price changes. Many states index their minimum wage. Minimum Wage Increases in 2027 State and local
IRS
The Internal Revenue Service, the federal agency that collects income tax and payroll taxes. Sources Federal income tax
IRS Tax Withholding Estimator
The IRS online tool for checking your withholding and filling in Form W-4 accurately. W-4 Calculator Federal income tax
Itemized deductions
Specific expenses, such as mortgage interest and state taxes, you can deduct instead of taking the standard deduction if they add up to more. W-4 Calculator Federal income tax

L

Learned professional exemption
The FLSA exemption for work requiring advanced knowledge in a field such as law, medicine or accounting. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Local income tax
Tax on wages by a city, county or school district, such as New York City, Philadelphia, Ohio cities or Indiana counties. Calculators by state State and local
Local minimum wage
A minimum wage set by a city or county above the state rate, such as in Seattle or Denver. Minimum wage by state State and local

M

Mandatory flat rate
Supplemental wages over $1,000,000 from one employer in a year must be withheld at 37%. Bonus Tax Calculator Federal income tax
Marginal tax rate
The rate on your next dollar of income: your top federal bracket, plus payroll and state taxes where they apply. Pay Raise Calculator Federal income tax
Married filing jointly
One return for a married couple, combining both incomes. It has the widest brackets and the largest standard deduction. W-4 Calculator Federal income tax
Married filing separately
A married person filing their own return. Some deductions, including the overtime deduction, are not allowed with this status. Overtime Calculator Federal income tax
Mean wage
The average wage: total pay divided by the number of workers. Usually higher than the median. Salary by job Wage data
Median wage
The middle wage: half of workers earn more and half earn less. Less affected by a few very high earners than the average. Salary by job Wage data
Medicare tax
1.45% of all wages, with no cap, withheld from employees and matched by employers. Paycheck calculator Social Security and Medicare
Minimum wage
The lowest hourly pay employers may legally pay. Federal, state and local rates can differ; the highest applicable rate applies. Minimum wage by state Wage and overtime law
Modified adjusted gross income (MAGI)
AGI with some items added back. The overtime and tips deductions phase out based on MAGI. Overtime Calculator Federal income tax
Monthly pay
Being paid once a month: 12 paychecks a year. Biweekly vs Semi-Monthly Pay Pay basics
Motor carrier exemption
The FLSA overtime exemption for drivers and others whose work affects the safety of vehicles over 10,000 pounds in interstate commerce. Truck Driver salary Wage and overtime law
Multiple Jobs Worksheet
The W-4 page 3 worksheet that gives an extra withholding amount for Step 4(c) on the highest-paying job. W-4 Calculator Forms

N

Net earnings from self-employment
Business profit times 92.35%, the base for self-employment tax. 1099 Tax Calculator Self-employment
Net pay
What is left of your gross pay after taxes and deductions; the amount deposited in your bank account. Also called take-home pay. Paycheck calculator Pay basics
Net profit
1099 income minus business expenses. Self-employment and income tax are figured on it. 1099 Tax Calculator Self-employment
No-income-tax states
States that do not tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Calculators by state State and local
Nonexempt
An employee covered by federal overtime rules, owed at least 1.5 times the regular rate for hours over 40 in a workweek. Who Gets Overtime Pay? FLSA Exemptions Explained Pay basics
No tax on overtime
The popular name for the federal deduction of qualified overtime compensation, up to $12,500 a year ($25,000 joint) for 2025 to 2028. Social Security and Medicare still apply. No Tax on Overtime Calculator Federal income tax
No tax on tips
The popular name for the federal deduction of qualified tips, up to $25,000 a year for 2025 to 2028, with an income limit. No Tax on Overtime Calculator Federal income tax

O

OASDI
Old-Age, Survivors and Disability Insurance: the formal name for Social Security tax on a pay stub. How to Read a Pay Stub Social Security and Medicare
OEWS
Occupational Employment and Wage Statistics: the BLS survey of pay and employment by job and state. This site uses the May 2025 estimates. Salary by job Wage data
Official source
A government document or page, such as an IRS publication or a state labor department page, that every rate on this site is checked against. Sources This site
One Big Beautiful Bill Act
The 2025 federal law that added deductions for qualified tips, qualified overtime, car loan interest and seniors, and changed the Child Tax Credit. No Tax on Overtime Calculator Federal income tax
Overtime
Extra pay for hours over a limit. Under the FLSA, at least 1.5 times the regular rate for hours over 40 in a workweek. Overtime Calculator Wage and overtime law

P

Pay card
A prepaid debit card used to pay wages. Some states restrict pay cards or require a free way to get your money. Calculators by state Pay basics
Paycheck
One payment of wages from your employer, covering a pay period. Each paycheck has its own withholding. Paycheck calculator Pay basics
Paycheck calculator
A tool that estimates take-home pay from gross pay, taxes and deductions. Ours shows each step with its source. Paycheck calculator This site
Pay date
The day you are paid. The pay date, not the days worked, decides which year's tax rates apply. How to Read a Pay Stub Pay basics
Pay frequency
How often you are paid: weekly (52 paychecks a year), biweekly (26), semi-monthly (24) or monthly (12). Biweekly vs Semi-Monthly Pay Pay basics
Pay frequency law
A state rule on how often employers must pay, such as at least twice a month. Calculators by state State and local
Pay period
The span of days a paycheck covers, such as one week or two weeks. Biweekly vs Semi-Monthly Pay Pay basics
Pay raise
An increase in your pay rate. You take home less than the full raise because taxes apply to the extra pay. Pay Raise Calculator Pay basics
Pay range
The spread of wages for a job, shown on this site from the 10th to the 90th percentile. Salary by job Wage data
Payroll
An employer's process of figuring, withholding and paying wages and payroll taxes. Pay basics
Payroll taxes
Taxes based on wages: Social Security, Medicare, federal and state unemployment taxes, and some state programs. Social Security and Medicare
Pay stub
The statement that comes with each paycheck, listing earnings, taxes, deductions, net pay and year-to-date totals. How to Read a Pay Stub Pay basics
Percentage method
One of the IRS ways to figure withholding: annualize the paycheck, apply the yearly tax brackets, and divide back to the pay period. This site uses it. How it works Federal income tax
Percentile
The pay level below which a given share of workers fall. The 10th percentile is the pay 10% of workers earn less than. Salary by job Wage data
Phase-out
A rule that shrinks a deduction or credit as income rises above a threshold, until it reaches zero. Overtime Calculator Federal income tax
Post-tax deduction
A deduction taken out after taxes, such as a Roth 401(k), union dues or a garnishment. Paycheck calculator Deductions and benefits
Pre-tax deduction
A deduction taken out before some or all taxes are figured, such as a traditional 401(k) or health insurance through a cafeteria plan. Paycheck calculator Deductions and benefits
Publication 15 (Circular E)
The IRS employer's tax guide, covering Social Security, Medicare, supplemental wages and deposit rules. Sources Federal income tax
Publication 15-T
The IRS guide to federal income tax withholding methods. This site's federal withholding follows its percentage method tables. How it works Federal income tax

Q

Qualified business income (QBI) deduction
A deduction of up to 20% of qualified business income for many self-employed people, limited above certain incomes. 1099 Tax Calculator Self-employment
Qualified overtime compensation
The premium part of overtime pay required by the Fair Labor Standards Act (the extra half of time and a half). Only this part counts for the overtime deduction. Overtime Calculator Federal income tax
Qualified tips
Voluntary cash or card tips in an occupation that customarily received tips, counted for the tips deduction. No Tax on Overtime Calculator Federal income tax
Quarterly due dates
The four estimated tax deadlines each year, usually in April, June, September and January. 1099 Tax Calculator Self-employment

R

Reciprocity agreement
An agreement between states that lets residents of one work in the other and pay income tax only to their home state. Calculators by state State and local
Refundable credit
A credit that can be paid to you even if it is larger than your tax, such as the Earned Income Tax Credit. Federal income tax
Regular rate
Your normal hourly rate (including some bonuses and shift premiums under federal rules), used to figure overtime pay. Overtime Calculator Pay basics
Residency
Whether you live in a state or city. Residents and nonresidents are often taxed differently. Calculators by state State and local
Roth 401(k)
After-tax 401(k) contributions: no tax saving now, but qualified withdrawals are tax-free. Salary Paycheck Calculator Deductions and benefits

S

Safe harbor
Paying enough during the year (generally 90% of this year's tax or 100% of last year's, 110% for higher incomes) to avoid the underpayment penalty. 1099 Tax Calculator Federal income tax
Salaried exempt
A salaried employee who is exempt from federal overtime rules, usually because of professional, administrative or executive duties and pay of at least $684 a week. Who Gets Overtime Pay? FLSA Exemptions Explained Pay basics
Salary basis
Being paid a set amount each pay period that does not drop with hours worked or quality of work; required for most exemptions. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Salary level test
The minimum salary for most white-collar exemptions: $684 a week under the federal standard. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Salary paycheck calculator
Our calculator for take-home pay on a yearly salary at any pay frequency. Salary Paycheck Calculator This site
Salary to hourly
Converting a yearly salary to an hourly rate by dividing by the hours worked in a year, usually 2,080. Salary to Hourly Calculator Pay basics
Schedule 1-A
The Form 1040 schedule for the new deductions, including qualified overtime and qualified tips. Overtime Calculator Federal income tax
Schedule C
The tax form for profit or loss from a sole proprietorship. 1099 Tax Calculator Self-employment
Schedule SE
The tax form for figuring self-employment tax. 1099 Tax Calculator Self-employment
Self-employment tax
Social Security and Medicare for the self-employed: 15.3% of 92.35% of net earnings, covering both the employee and employer shares. 1099 Tax Calculator Self-employment
Semi-monthly pay
Being paid twice a month, often on the 15th and the last day: 24 paychecks a year. Biweekly vs Semi-Monthly Pay Pay basics
Senior deduction
An extra federal deduction for people 65 and older for 2025 to 2028, with an income limit. It can be entered in Step 4(b) of the W-4. No Tax on Overtime Calculator Federal income tax
Service charge
A mandatory fee added to a bill. It is not a tip; for tax purposes it is regular wages if paid to employees. Pay basics
Shift differential
Extra pay for working less desirable shifts, such as nights or weekends. Pay basics
Show the math
The calculator option that lists every step of a paycheck with the official source. How it works This site
Single
The filing status for unmarried people who do not qualify as head of household. W-4 Calculator Federal income tax
SOC code
Standard Occupational Classification code, the federal number for a job category, such as 29-1141 for registered nurses. Salary by job Wage data
Social Security Administration (SSA)
The federal agency that runs Social Security and publishes the yearly wage base. Sources Social Security and Medicare
Social Security tax
6.2% of wages up to the wage base ($184,500 in 2026), withheld from employees and matched by employers. Also called OASDI. Why Your Paycheck Gets Bigger After the Social Security Cap Social Security and Medicare
Social Security wage base
The most wages subject to Social Security tax in a year: $184,500 in 2026. Pay above it has no Social Security tax. Why Your Paycheck Gets Bigger After the Social Security Cap Social Security and Medicare
Sole proprietor
A person who owns an unincorporated business alone. Business income goes on their personal return. 1099 Tax Calculator Self-employment
Standard deduction
A fixed amount subtracted from income before tax: $16,100 for single filers, $32,200 for married filing jointly and $24,150 for heads of household in 2026. 1099 Tax Calculator Federal income tax
State disability insurance (SDI)
A state program that pays benefits when you cannot work due to illness or injury, funded by a payroll deduction in some states, such as California. California paycheck calculator State and local
State income tax
Tax a state collects on income. 41 states and DC tax wages; each sets its own rates and withholding rules. Calculators by state State and local
State minimum wage
The lowest hourly pay a state allows. Where it is higher than the federal minimum, the higher rate applies. Minimum wage by state State and local
State withholding certificate
A state's own version of the W-4, such as California's DE 4 or Arizona's A-4, used for state income tax withholding. Calculators by state Forms
Supplemental wages
Pay other than regular wages, such as bonuses, commissions and back pay. Employers may withhold federal tax on it at a flat 22%. Bonus Tax Calculator Federal income tax
SUTA
State unemployment tax. Employers pay it; a few states, such as Alaska, New Jersey and Pennsylvania, also take a small employee share. Calculators by state Social Security and Medicare

T

Take-home pay
Another name for net pay: your pay after federal, state and local taxes and all deductions. Paycheck calculator Pay basics
Taxable income
Income after deductions, on which federal income tax is figured. Federal income tax
Taxable wages
The pay a tax is figured on after pre-tax deductions. It can differ for income tax and for Social Security and Medicare. How to Read a Pay Stub Deductions and benefits
Tax bracket
A range of taxable income taxed at one rate. Only the income inside each bracket is taxed at that bracket's rate. Paycheck calculator Federal income tax
Tax credit
An amount subtracted directly from your tax, dollar for dollar. Worth more than a deduction of the same size. Federal income tax
Tax deduction
An amount subtracted from income before tax is figured. It saves your marginal rate times the deduction. Federal income tax
Tax due
What you owe when you file because too little tax was withheld or paid during the year. Federal income tax
Tax refund
Money returned to you when more tax was withheld or paid during the year than you owe. No Tax on Overtime Calculator Federal income tax
Tax year
The calendar year your income is taxed for. Paychecks dated in 2026 use the 2026 withholding tables. Federal income tax
Temporary disability insurance (TDI)
A state disability program, called TDI in states such as New Jersey, Hawaii and Rhode Island, funded in part by a payroll deduction. Calculators by state State and local
Time and a half
Overtime pay at 1.5 times your regular rate. Overtime Calculator Wage and overtime law
Tip credit
The part of the minimum wage an employer may cover with an employee's tips, where the law allows it. Some states, such as California and Washington, allow none. Minimum wage by state Pay basics
Tipped employee
A worker who regularly receives tips. Federal law and some states let employers pay a lower cash wage and count tips toward the minimum wage. Minimum wage by state Pay basics
Tips
Money customers give employees for service. Tips are taxable wages and must be reported to your employer. No Tax on Overtime Calculator Pay basics
Top-coded wage
A wage BLS shows only as being above a cap, without the exact figure. Salary by job Wage data
Traditional 401(k)
Pre-tax 401(k) contributions: taxed later, when withdrawn in retirement. Salary Paycheck Calculator Deductions and benefits
Training wage
A lower wage some states allow for new or young workers for a limited time. Minimum wage by state Wage and overtime law

U

Underpayment penalty
An IRS charge when too little tax was paid during the year through withholding and estimated payments. 1099 Tax Calculator Federal income tax
Union dues
Payments to a labor union, usually taken from pay after taxes. Deductions and benefits
US Department of Labor (DOL)
The federal agency for wage, hour and workplace laws. Sources Wage and overtime law

V

Verified on
The date a rate was last checked against its official source. Sources This site

W

W-2 vs 1099
The difference between being paid as an employee (taxes withheld, W-2) and as a contractor (no withholding, self-employment tax, 1099). 1099 vs W-2: How Much More a Contractor Needs to Earn Self-employment
W-4 calculator
Our tool for filling in Form W-4 steps and seeing the effect on each paycheck. W-4 Calculator This site
W-4 Step 1
Your name, address, Social Security number and filing status. Form W-4 2026: Step-by-Step Walkthrough Forms
W-4 Step 2
For multiple jobs or a working spouse: the IRS estimator, the Multiple Jobs Worksheet, or the checkbox. W-4 Calculator Forms
W-4 Step 2(c) checkbox
The box both spouses (or both jobs) check when there are two jobs paying about the same; it halves the brackets on each. W-4 Calculator Forms
W-4 Step 3
Dependents and credits: $2,200 per child under 17 and $500 per other dependent, if income is under the limit. W-4 Calculator Forms
W-4 Step 4(a)
Other income not from jobs, such as interest or dividends, so tax on it is withheld from your pay. W-4 Calculator Forms
W-4 Step 4(b)
Deductions beyond the standard deduction, including qualified tips and overtime, which lower your withholding. No Tax on Overtime Calculator Forms
W-4 Step 4(c)
Extra federal tax to withhold from each paycheck. W-4 Calculator Forms
WA Cares Fund
Washington's long-term care program, funded by a payroll premium on wages. Washington paycheck calculator State and local
Wage and Hour Division
The part of the US Department of Labor that enforces the FLSA. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Wage bracket method
An IRS method that looks up withholding in printed tables by pay range. It can differ from the percentage method by a few dollars. How it works Federal income tax
Wage claim
A complaint to a state labor agency or the US Department of Labor to recover unpaid wages. Calculators by state State and local
Wages
Pay for work as an employee, including salary, hourly pay, overtime, bonuses, commissions and tips. Pay basics
Weekly pay
Being paid every week: 52 paychecks a year. Biweekly vs Semi-Monthly Pay Pay basics
White-collar exemptions
The FLSA exemptions for executive, administrative, professional, computer and outside sales employees. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law
Withholding
Tax your employer takes out of each paycheck and sends to the government on your behalf. It is an advance on the tax you owe for the year. Paycheck calculator Federal income tax
Workweek
A fixed, recurring 7-day period used to count hours for overtime. Who Gets Overtime Pay? FLSA Exemptions Explained Wage and overtime law

Y

Year-to-date (YTD)
Totals from January 1 through the current paycheck. YTD pay is how you check that Social Security stopped at the wage base. How to Read a Pay Stub Pay basics
Youth minimum wage
A lower minimum some laws allow for young workers, such as the federal $4.25 for workers under 20 in their first 90 days. Minimum wage by state Wage and overtime law