Question

Please can someone tell me the defenitions of each of these terms?

1. sales tax
2. rebate
3. income tax
4. gross pay
5. net pay

Answer 1

1. A fee charged based on the total cost of things you buy. It is collected by the seller and added onto the price of the things bought. It's based on a percent set by the government.
2. A partial discount or refund given on a purchased item
3. Taxes paid by employees to federal and state government. Collected or withheld from one's paycheck.
4. The total amount of an employee's earnings before deductions are taken out (aka Total Pay), and may include overtime pay
5. The pay you get after taxes and the deductions. You subtract your gross pay by federal tax, social security, etc.