Pay Stub Abbreviations from All Major Payroll Companies

Withholding is a payroll deduction that is given directly to a federal, state or local authority for the purpose of paying applicable taxes. Deductions are funds subtracted from one’s total earnings to pay for things like taxes, benefits and garnishments. 401(k) contribution limit is the cumulative cap of funds an employee may elect, often for retirement plans. This limit is determined by the combined total of all plans an employee paid toward and will change from year to year. “In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work.

1. A life change that allows an employee to enroll in or modify benefits outside open enrollment.
2. Here are some of the general pay stub abbreviations that you will run into on any pay stub.
3. Additional compensation to motivate higher employee productivity and reward top performance.

Time to Fill

The payroll authorization form is a document that authorizes payroll changes, such as salary adjustments, bonus payments, or terminations. It serves as a formal record, ensuring all payroll adjustments are approved by the appropriate team member. The W-4 form is completed by employees to indicate their tax withholding status. Changes in personal circumstances, like marriage or the birth of a child, may necessitate updates to the form. A copy should also be sent to the IRS and state tax agency, if applicable.

Small Business Payroll Glossary

A period of seven consecutive 24-hour periods that define the hours an employee is expected to work. The loss of high-performing, highly valued employees due to avoidable factors. When managers prioritize employees who work physically near them versus hybrid or remote workers. A comprehensive HR strategy focused on managing and developing employees as key assets. Temporary unpaid leave often required due to economic issues, lack of work, or other operational needs.

The length of time an employer design a technology marketing slick uses to determine their IRS deposit schedule for withheld federal income tax and FICA taxes plus their own share of FICA taxes. Money an employee earns upon completing a task — typically for selling a specific amount of employer goods or services. Some employees earn commissions in addition to their base pay, while others receive only commissions. The extra amount added to an employee’s wages for working outside normal business hours. Understanding basic payroll terminology is essential to processing payroll successfully.

This is backed by an annual income tax return, which addresses any under- and overpaid taxes. The amount an employer is required by law to take out of an employee’s wages for a specific payroll tax. Payroll processing involves calculating the total earnings of each employee, deducting the appropriate taxes and other withholdings, and issuing payments. This complex task requires up-to-date knowledge of tax laws and regulations. Using payroll software can streamline this process, ensuring accuracy and compliance. Minimum wage is the lowest hourly pay rate you’re legally allowed to pay an employee.

Minimum Wage

A “tip credit” lets employers pay tipped employees less than the minimum wage if they make enough tips to account for the difference. An employee’s direct and indirect compensation equals their total compensation. An employee’s total wages — how to calculate fixed cost with examples e.g., salary, hourly wages, bonus, commissions, overtime, tips, vacation pay — before mandatory and voluntary deductions come out. An employment tax guide developed for employers by the Internal Revenue Service (IRS).

A unique nine-digit number what are the meanings between ‘incur’ and ‘occur’ in accounting assigned to businesses by the IRS for use in tax filings or other documents. A counseling service offered by employers to help employees with personal or work-related problems. Our glossary is regularly updated to keep pace with the rapidly changing industry. Bookmark it for easy reference — whether you’re an HR pro, a business owner, or just trying to decipher your paycheck. All information is stored in the National Directory of New Hires and helps child support agencies locate parents who owe money. Before you can begin reporting, you must register under your state’s New Hire Reporting Program.

For example, during payroll processing, the employer transfers funds from the company’s bank account to each respective employee’s bank account. You’ll hear this thrown around quite a bit and also referred to as FLSA. The Fair Labor Standards Act (FLSA) is a federal act that consists of numerous laws meant to assure that employees are treated well and paid fairly. The federal minimum wage and overtime rules fall under this act as do recordkeeping rules and child labor laws. FICA taxes are Social Security and Medicare taxes the federal government charges on each employee’s earnings. It’s like a Social Security number for businesses and is required for any business processing payroll.