Federal Insurance Contributions Act (FICA) taxes are the taxes on wages that fund Social Security and Medicare. The Social Security taxes and Medicare taxes are separate and operate differently. Social Security taxes are 12.4% of an employee’...
employee benefits
FMLA
The Family and Medical Leave Act (FMLA) requires employers to give 12 weeks paid leave to covered employees having a child or due to a severe medical condition of the employee or a family member. Employees do not get paid, but they must be...
free rider
Free rider is a description of people, entities, or provisions that benefit from the actions of another entity without contributing. Free rider concepts arise frequently in law and politics. For example, in labor law, non-union employees who...
freelancer
A freelancer is not an employee for any organization and is essentially an independent contractor who gets paid on a per-job basis. Unlike an employee, a freelancer has the freedom to complete different jobs simultaneously given there is no...
fringe benefit
Fringe benefits are various non-wage employee benefits that are in addition to normal wages. Some fringe benefits are exempt from tax, provided certain conditions are satisfied. Section 132 of the Internal Revenue Code lists all the fringe...
group insurance
Group insurance is defined as the coverage of several individual persons under one comprehensive insurance policy issued by employers, associations, unions, or other qualified groups. Usually for the purpose of protecting and providing for...
incentive stock option (ISO)
Incentive stock options (ISO) refer to a set of stock options used by corporations to compensate major employees in a way that generates limited tax obligations for the employee. If structured and used correctly, an ISO can be taxed as...
independent contractor
Distinguished from employees, independent contractors are entities hired by employers to accomplish certain tasks but do not have the right of control over those entities. Independent contractors tend to have specialized skills or knowledge...
individual retirement account (IRA)
Individual retirement accounts (IRA) allow employees to create personal retirement accounts that receive the tax benefits of an employee sponsored 401k plan. IRAs can be created at many banks and investment companies with a variety of...
labor union
A labor union (also known simply as a union or a labor organization) is a group of employees in a certain trade, industry, or corporation that organize to improve their salary, benefits, and working conditions.
Labor unions...