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When an entrepreneur introduces a new improved product that is highly valued relative to cost
Net Pay
The amount of money a worker takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.
Social Security Tax
The amount of Social Security a worker pays depends on the Social Security percentage and the maximum taxable income for that year; the amount is split between the employee and the employer.
Medicare Tax
A federal tax deducted from employees' paychecks to fund the Medicare program, which provides healthcare to seniors.
Federal Withholding
The amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of taxes.
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