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Financial WELLNess GLOSSARY

Tax and Deductions

Key terms about taxes, deductions, credits, and withholdings to help you understand how they impact your paycheck and filing.

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COBRA

COBRA

A federal law that allows employees and their families to continue health insurance coverage for a limited time after leaving employment or in other qualifying events, such as divorce or death.

Tax and Deductions

Employee Retention Credit (ERC)

Employee Retention Credit (ERC)

A refundable tax credit for employers that encourages them to keep employees on their payroll during times of economic hardship.

Tax and Deductions

Income Tax Withholding

Income Tax Withholding

The portion of an employee’s wages that an employer is required to withhold for federal and state income taxes.

Tax and Deductions

Payroll Taxes

Payroll Taxes

Taxes an employer must withhold from an employee’s salary, including income tax, Social Security, and Medicare contributions.

Tax and Deductions

Social Security

Social Security

A federal program that provides retirement income, disability benefits, and survivor benefits to eligible workers and their families, funded through payroll taxes.

Tax and Deductions

Tax-Deferred

Tax-Deferred

status where income is not taxed until it is withdrawn, often referring to retirement accounts like 401(k)s and IRAs.

Tax and Deductions

Unemployment Insurance

Unemployment Insurance

A government-provided benefit that offers temporary financial assistance to employees who lose their job through no fault of their own.

Tax and Deductions

Wage Garnishment

Wage Garnishment

A legal procedure where a portion of an employee’s paycheck is withheld by their employer to pay off a debt or fulfill a financial obligation.

Tax and Deductions