HR & Payroll Glossary of Terms

Human Resources and Payroll Glossary of Terms

Dive into the world of human resources and payroll with confidence and clarity. If you’ve ever found yourself puzzled by a specific term or acronym in the realm of HR and payroll, our comprehensive glossary is your ultimate key to unraveling these mysteries.

This informative resource is more than just a list of terms; it’s a gateway to understanding the intricate language of HR and payroll management. Regularly updated to reflect the ever-evolving landscape, our glossary encompasses a wide array of industry-specific vocabulary, concepts, and acronyms, ensuring you’re always one step ahead.

Specializing in tax-related terminology, the Glossary transforms complex jargon into easy-to-understand definitions. Whether it’s deciphering intricate tax codes or navigating through the nuances of employee benefits, our resource is designed to make complex information accessible and comprehensible.

Stay informed and ahead of the curve in your professional journey. Our glossary not only serves as a reliable reference but also empowers you to make informed decisions, ensuring compliance and efficiency in your HR and payroll processes.

Embrace clarity and precision in the world of HR and payroll with TimeTrex’s comprehensive Glossary at your fingertips!

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9 A

Abatement of Penalties: A request to a governing agency to reverse or cancel a penalty charge, often in the context of tax or regulatory infractions.
ABA Routing Number (ABA/Trans Code): A nine-digit numerical code, devised by the American Bankers Association, that identifies a specific financial institution. It's essential for routing electronic transactions, including direct deposits and payroll processing.
Absent Parent: A parent who, though not residing with or having custody of a child, bears financial responsibility for child support. Also known as a non-custodial parent.
Account Balance in SUI: Represents the net amount in an employer's State Unemployment Insurance account, calculated as total contributions minus any benefit charges. These funds are non-refundable to the employer.
Accrual: Accumulation of time or money over a period, such as vacation hours or vacation pay. In payroll systems, accrual accounts increase with each earning period and decrease with deductions like time off.
Accrual Accounting: The process of recognizing revenues, expenses, assets, and liabilities in the financial records after their monetary value is determined but before the actual cash transaction occurs.
Automated Clearing House (ACH): A network for processing electronic financial transactions between banks and other financial institutions.
ACH Credit Transaction: In this system, an employer initiates a credit transaction from their bank account, typically a day before the due date of a payment, as required by the financial institution.
ACH Debit Transaction: A payment method where a company authorizes its bank to deduct funds directly for obligations such as payroll taxes.
Acquisition (Business Acquisition): See Merger / Acquisition / Divestiture Analysis.
Additional Unemployment Claim: Filed after a series of unemployment claims within a benefit year, requiring a break in filing for at least a week with intervening employment and a subsequent documented separation.
Administrative Procedure in Child Support: A method where child support orders are established and enforced by an executive agency instead of through judicial proceedings.
Administrator: A user role with complete access to manage and configure a system or software, overseeing subordinate users and settings.
Advance Earned Income Credit (AEIC): Allows eligible employees to receive portions of their earned income credit in advance through payroll. These payments are made from federal income, Social Security, and Medicare taxes withheld from the employee's wages.
Advice Number in Banking: An identification number used primarily for banking purposes, often found on direct deposit vouchers.
Advice of Credit (AOC): A form or coupon issued by the government indicating the amount of a federal tax deposit, used by employers when making tax payments.
Aid to Families with Dependent Children (AFDC): Government assistance provided to families lacking financial support due to the absence, disability, or death of one parent. Known in some regions as Aid to Dependent Children (ADC).
Alien Status: Refers to individuals in the U.S. who are not citizens. Detailed information is available in guides covering Alien Immigration, Payments, and Taxation.
Alimony Payments: Financial support payments made from one spouse to another during or following a legal separation or divorce, also referred to as spousal support.
Allowable Lien Limits: Federal and state-imposed limits on the proportion of an employee's wages that can be garnished or attached due to a lien.
Alternate Base Year (ABY) in Unemployment Claims: Used when claimants cannot establish a valid claim using the regular base period, allowing the last four completed quarters as an alternative.
Amended Unemployment Tax Rate: Adjusted tax rates for employers based on changes in factors like voluntary contributions, experience transfers, and legislative updates.
Amendment (Tax Amendment): A revised tax return filed to replace an earlier quarterly or annual submission.
Applied For Employer Identification Number: A temporary status for an Employer Tax Identification Number (EIN) requested from an agency but not yet issued.
Arrearages in Child Support: Overdue child support payments including any related penalties or assessments.
Assignment of Support Rights: An agreement where a recipient of public assistance transfers their right to child support payments to the state in exchange for AFDC benefits.
Audit Log: A record that tracks and documents events within a system, including timestamps and user identification, crucial for security and compliance.
Automated Clearing House Operations: A system operated by a Federal Reserve Bank on behalf of financial institutions, facilitating electronic payments and direct deposits.
Average Taxable Payroll: Calculated as the average taxable payroll of an employer over a specified period preceding the computation date for tax rates.

B

Backup Withholding: A mandatory Federal Income Tax (FIT) deduction from interest payments when a customer’s Social Security Number is not on file. Financial institutions, including banks and savings and loans, are required to withhold 24% of taxable interest or dividends on accounts lacking correct taxpayer identification numbers. This withholding is reported and deposited with federal payroll taxes using Form 945.
Bank Release Date: The specific date on which a payroll tax debit transaction is initiated and sent to the bank for processing.
Bankruptcy Wage Attachment: The legal process of garnishing a portion of an employee's wages to satisfy outstanding debts as part of bankruptcy proceedings. This type of lien generally takes the highest priority, superseding all other liens except for child support orders. When a bankruptcy order is received, all other liens should be inactivated.
Base Period for Unemployment Benefits: The time frame used to calculate unemployment benefits, typically the first four of the last five completed calendar quarters preceding the start of a claimant's benefit year. Some states may use the 52 weeks prior to the benefit year. This period is crucial for determining a claimant's monetary eligibility and the liability of employers.
Base Period (Employer): The measurement period for assessing an employer’s history with unemployment, typically the four fiscal years preceding the computation date (July 1st of each year).
Benefit Accrual: The process by which employees accumulate benefit hours, such as paid vacation or sick leave, over a period of time.
Benefit Charging in Unemployment: The process of allocating unemployment compensation benefits to an individual, based on wages paid by the employer during the base period. The amount each employer is charged varies based on several methods, and this directly impacts the employer’s unemployment insurance rate.
Benefit Eligibility Conditions: Statutory requirements that an individual must meet each week to qualify for unemployment compensation. The primary condition is that the claimant must be unemployed through no fault of their own.
Benefit Formula: A specific mathematical formula, set by state or federal laws, used to determine an individual's weekly benefit amount and the maximum potential benefits they can receive.
Benefit Ratio (BR): A formula used by some states to calculate the Unemployment Insurance Experience Tax Rate. This ratio is derived by dividing the taxable wages over a three to five-year period by the benefits charged during the same period, and it plays a crucial role in determining the employer's tax rate.
Benefits: Refers to the monetary amount paid to workers who are unemployed or partially unemployed.
Benefit Wage Method: Employed by Delaware and Oklahoma, this method charges each base period employer an amount equal to the wages paid during the base period, up to a specified liability limit. Employers may receive rehire credits for reemploying former workers within the benefit year.
Benefit Wage Ratio (BWR): A calculation used in Delaware and Oklahoma to determine the Unemployment Insurance Experience Tax Rate. It compares the benefit wages over the previous three to five years against the benefits charged during the same period to set the employer tax rate.
Bi-Monthly Pay: A payroll schedule where employees receive their wages twice each month on predetermined dates, typically resulting in 24 pay periods per year.
Bi-weekly Payroll: A payroll schedule where employees are paid every two weeks, often used for calculating withholding taxes using the percentage of wage-bracket method.
Bonus: Additional compensation awarded to employees as an incentive or reward, given on top of the usual salary or wages.
Branch Reporting and Location Coding: A reporting method where multi-location employers are allowed, in some states, to assign each branch or location its own state account number for filing contribution and wage reports. This system simplifies benefit charge allocation and claim filing processes for large organizations with multiple operations.
Business Tax Credit for Employer-paid FICA on Tips: A specific tax credit available to food and beverage establishments for Social Security and Medicare taxes paid on certain employee tips. This credit is applicable only to tips not used to meet minimum wage requirements and is claimed using IRS Form 8846.

C

Cafeteria Plans (Section 125 Plans): Flexible benefit plans under the Internal Revenue Code Section 125, allowing employees to select from a 'menu' of pre-tax and post-tax benefits, including health insurance, dependent care assistance, and additional vacation days. These plans provide tax advantages by reducing taxable income for both the employer and employees.
Calendar Quarter: A period of three months in a year, used for financial and tax reporting purposes. The quarters are January to March, April to June, July to September, and October to December.
Calendar Week: A standard time measurement unit comprising seven consecutive days, typically starting on Sunday and ending on Saturday, used for scheduling and payroll processing.
Calendar Year: The 12-month period starting from January 1st to December 31st, used for annual financial, tax, and reporting purposes.
Case/Docket Number: A unique identifier assigned by a court to a specific case or legal proceeding, such as a judgment or lien against an individual or entity.
Charge Statement: A document detailing unemployment benefit payments made to former employees. These statements are issued based on state regulations and can be weekly, monthly, quarterly, or annually.
Check Digit (CD): A numerical value calculated and appended to a series of numbers (such as an identification number) to ensure its accuracy and validity, commonly used in financial transactions and by taxing agencies.
Child Support Payments: Financial contributions mandated by a court or legal order, paid by a non-custodial parent to the custodial parent for the upkeep and care of their child(ren).
Child Support Withholding: The process of deducting child support obligations directly from an employee’s wages, as per a court or administrative order, and remitting these funds to the appropriate authority or custodial parent.
Choice of Financing (Reimbursing Analysis): An analysis conducted by not-for-profit entities to determine the most cost-effective unemployment funding option, comparing experience-rated taxation versus reimbursing methods over a specified period.
Circular 'E': The Employer’s Tax Guide published annually by the IRS, detailing current federal tax laws, deposit rules, and rates for employers.
CIT - City or Local Income Tax: A tax withheld from an employee's wages as required by certain city or local jurisdictions, calculated based on earnings, pay frequency, exemptions, and marital status.
Claim: A formal request made by a former employee to receive unemployment benefits, typically filed with a state unemployment agency.
Claimant: An individual, either totally or partially unemployed, who has filed for unemployment benefits.
Claimant Fraud: The intentional misrepresentation or concealment of information by a claimant to receive unemployment benefits to which they are not entitled.
Client Service Representative (CSR): A professional responsible for client support, addressing questions and resolving issues related to payroll and related services.
Clocking in Machine: A device or system utilized by organizations to accurately record the start and end times of employees' work hours, ranging from mechanical punch clocks to advanced biometric and web-based platforms, streamlining payroll processes and enhancing workforce management.
COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985: A federal law mandating the continuation of group health insurance coverage for individuals and their families following certain events that would otherwise result in the loss of coverage.
COBRA Qualifying Event: Specific circumstances under the COBRA Act that trigger an offer of extended health insurance coverage to employees, spouses, or dependents. These events include job loss, reduction in hours, divorce, death of the covered employee, and other significant life changes.
COD - Court Ordered Deduction: A legal directive requiring an employer to deduct specific amounts from an employee's paycheck for obligations such as child support payments, garnishments, or other court-ordered financial responsibilities. These funds are then paid directly to the court or designated agency.
Collection Agency: An external organization tasked with recovering overdue debts on behalf of creditors. They often work on a commission basis, earning a percentage of the total amount collected.
Combined Filing: A reporting method where multiple tax liabilities, such as State Income Tax (SIT), State Unemployment Insurance (SUI), State Disability Insurance (SDI), and City Income Tax (CIT), are filed and paid together. This simplifies the tax process for employers and is mandated by some states like California and New York.
Combined Wage Claim: An unemployment insurance claim filed in one state using wage credits accumulated across two or more states. This is particularly useful for individuals who have worked in multiple states.
Combo (Combined): A term used in reference to multiple Tax Filing Service company codes that share a common Employer Tax Identification Number (EIN).
Commission: A form of compensation where an employee earns a percentage of the sales they make or a fixed amount per sale. This is a common pay structure in sales-oriented jobs.
Common Ownership: A situation where the owners, partners, officers, shareholders, or previous owners of two or more organizations are related by blood or marriage.
Common Pay Agent: An IRS provision allowing employers with multiple Federal Employer Identification Numbers (FEINs) to consolidate tax returns and payments under one FEIN, simplifying tax reporting and payment processes.
Common Paymaster: An IRS rule allowing related corporations employing the same individual to be considered a single employer for the purposes of Social Security and Federal Unemployment Tax calculations.
Common Rate: Refer to Joint Account.
Common Rate Analysis: Refer to Joint Account Analysis.
Company Code: An identifier assigned to each client, facilitating the management and processing of their payroll and tax filings.
Compensatory Time: Paid time off awarded to an employee in lieu of overtime pay for working extra hours. While subject to federal regulations, certain public sector employees may be exempt from these restrictions.
Complaint: A legal document filed in court by a plaintiff outlining the allegations against a defendant and the relief sought.
Compliance: The act of adhering to federal, state, or local laws and regulations, particularly those relating to taxes and employee relations.
Computation Date: The specific date used to evaluate an employer's experience for determining unemployment insurance contribution rates.
Consent Agreement: A voluntarily signed document acknowledging paternity or responsibility for child support.
Consolidated Omnibus Budget Reconciliation Act (COBRA): A federal law mandating the extension of group health benefits by employers with 20 or more employees to former employees, retirees, and their families following certain life events. Coverage duration varies based on the nature of the qualifying event.
Constructive Receipt: An IRS principle stating that wages are taxable and subject to employment tax withholding when they are either actually paid or made available to employees without substantial restriction.
Continued Claim: An application submitted by an unemployed individual, either by mail or in person, to claim waiting period credit or payment for one or more weeks of unemployment.
Contribution - Employee: In some states, a portion of the Unemployment Insurance Fund is financed through employee contributions via payroll withholding. Employers failing to withhold these contributions are liable for the unpaid amounts and may face penalties.
Contribution - Employer: Employer payments to the state unemployment fund, calculated by applying the assigned unemployment tax rate to the taxable payroll. These contributions finance the Unemployment Insurance Fund.
Contribution Rate: Refer to Tax Rate.
Contribution Rate Notice: Refer to Tax Rate Notice.
Contribution Report: A quarterly report filed by employers, detailing total wages, taxable wages, and the contribution amount due to the state unemployment fund.
Conversion Representative: A professional assisting clients in transitioning from their current HR or payroll systems to alternative companies services.
Correspondence Address: The address where Tax Filing Service clients receive their Statements of Deposits and Filings.
Cost Centers: Categories or tags used in accounting and payroll to allocate costs for specific departments, projects, or tasks, aiding in financial management and reporting.
Court-Ordered Support: Financial support mandated by a court order, typically for child support, which is paid directly to the court or a child support enforcement agency.
Covered Employer: An employer subject to the Employment Security Law, determined by factors like the number of employees, nature of employment, wages paid, business acquisitions, or voluntary coverage election.
Covered Employment: Employment where the company has control over the job functions. Under federal law, these individuals are considered "common law" employees, including roles like managers and corporate officers. Employers must report and pay contributions on wages of all employees as defined by state and federal guidelines.
Covered Wages: In the context of FUTA, this includes all cash payments for services rendered, such as salaries, commissions, and bonuses. It also encompasses the cash value of non-cash remuneration. Some payments and benefits are exempt under FUTA, and necessary business expenses, if properly documented, are usually not considered taxable wages.
CR (Credit): A negative amount offsetting accumulated values, often in the context of tax credits or refunds due from overpayment.
Credit Elect: A practice where over-deposited taxes in a quarter can be applied against future liabilities in subsequent quarters, as permitted by some agencies.
Credit Reduction: A situation where employers in states with outstanding loans from the Federal Unemployment Trust Fund are not entitled to the full credit for unemployment contributions paid to those states. These rates are published annually on Form 940.
CSR (Client Service Representative): A professional providing client support and resolving inquiries related to payroll and other services.
Custodial Parent: The individual, whether a parent, relative, or another person, with legal custody of a child and with whom the child resides.
Custody: The legal determination of with whom a child shall live, established through court proceedings or legal agreements.

D

DBA - Doing Business As: Refers to the trading name under which a business or individual operates, which may be different from the legal registered name.
DDA - Demand Deposit Account: A type of bank account from which funds can be withdrawn at any time without any notice to the bank. Often used by businesses for handling day-to-day transactions.
DDF - Direct Debit of Fees: The automatic deduction of fees, such as payroll processing charges, from a client's bank account through an Automated Clearing House (ACH) transaction.
Debit (DR): An accounting entry that signifies a reduction in assets, such as the deduction of taxes, fees, or payroll tax debits from a bank account.
Debit Elect: An option for taxpayers who have under-deposited taxes in a quarter to pay the balance in the following quarter, assuming the tax agency allows this flexibility.
Debit Filter: A banking tool that automatically rejects all Automated Clearing House (ACH) transactions for a client's account, except those pre-authorized by specific company identifiers, to prevent unauthorized debits.
Decision: A formal written ruling by a Hearing Officer or a panel of Judges, based on evidence presented at a hearing, determining the eligibility of a former employee for unemployment benefits or an employer's liability for such benefits.
Deductions: Amounts subtracted from an employee's paycheck, either before or after taxes, based on the type of deduction. Employees must consent to these deductions.
Default (Legal): The failure of a defendant to respond to a summons and complaint within the prescribed time frame in a civil case, leading to potential default judgment.
Default (Software): A preset value or setting in a device or software program that is automatically used unless a user specifies an alternative option.
Default Judgment: A court's decision in favor of the plaintiff when the defendant fails to respond to legal proceedings or court summons.
Defendant: An individual or entity against whom a legal action is brought in a court of law.
Deferred Compensation Plan: A type of employee benefit plan under various IRS sections, allowing employees to defer a portion of their income to a later date, typically retirement. 401(k) plans are a common example, with contributions being tax-deferred. Employer contributions are also tax-deferred. Such plans have strict regulations regarding eligibility, participation, and withdrawals.
Delinquent Account: An employer’s account becomes delinquent when quarterly contribution reports, wage reports, or unemployment taxes are not submitted to the state agency by the due date.
Demand Deposit Account (DDA): The primary bank account used by a client for processing payroll liabilities.
De Minimis Fringe Benefit: A small, infrequent benefit provided by an employer to an employee that is considered too trivial to record or administer, and thus excluded from the employee's taxable income.
Dependent: For tax purposes, a dependent is an individual who receives substantial financial support from the taxpayer and meets certain IRS criteria regarding relationship, age, residency, income, and filing status.
Dependents' Allowance: Additional benefits provided under some State unemployment compensation laws for claimants with family support responsibilities.
Determination: An official decision by the Employment Security Department regarding an individual’s unemployment claim or an employer's tax status.
DI - Disability Insurance: Government or employer-provided financial support for employees who are unable to work due to illness or injury.
Direct Debit of Fees (DDF): The process of automatically charging payroll-related fees from a client's bank account via ACH.
Direct Deposit: The electronic transfer of an employee's net pay directly into their bank account(s), eliminating the need for physical paychecks.
Direct Send: A banking arrangement for daily transmission of debits and credits, aimed at accelerating posting and providing detailed information on returned items.
Direct Wire Transfer: Refer to Wire Transfer.
Disability Insurance (DI): A form of insurance that provides income replacement to employees who are temporarily or permanently unable to work due to a disability.
Disposable Income: An employee's earnings after mandatory legal deductions (such as taxes and mandatory pension contributions) have been withheld. Other lien deductions like child support are considered separate unless specified in the lien notification.
Disqualification: Certain conditions under state law that disqualify claimants from receiving unemployment benefits, such as voluntary resignation without good cause, misconduct, or refusal to accept suitable work.
District Manager (DM): A sales associate responsible for client engagement and sales in a specific district.
Divestiture: The process of selling all or part of a business to an unrelated entity, often involving changes in ownership and management.
Division: A segment of a company that operates under the same federal and state account numbers but is distinguished from other segments for internal management purposes.
DM - District Manager: A professional responsible for overseeing sales and client relationships within a designated district or region.
Doing Business As (DBA): The operating name of a company, as used in business transactions, which may differ from its legal registered name.
DR - Debit: Refers to a financial transaction that decreases an account balance, commonly used in the context of tax payments or fee deductions.
Duration of Benefits: The maximum period during which a claimant is eligible to receive unemployment benefits, usually determined by the total monetary eligibility or the maximum number of weeks allowed by state law.

E

Earned Income Credit (EIC): A federal tax credit for low to moderate-income working individuals and families, particularly those with children. The amount of EIC benefit depends on the recipient's income and number of children.
Earnings Allowance: The maximum amount a person receiving unemployment benefits can earn without reducing their weekly unemployment benefit amount.
EE - Employee: Commonly used abbreviation for 'employee' in business and HR documents.
EEO - Equal Employment Opportunity: A principle that ensures all individuals have equal chances for employment, without discrimination on the basis of race, color, religion, sex, national origin, age, disability, or genetic information.
EFT - Electronic Funds Transfer: A method of transferring funds electronically from one bank account to another. EFTs include direct deposit, wire transfers, and automatic bill payments.
EFTPS - Electronic Federal Tax Payment System: A service provided by the U.S. Department of the Treasury that enables taxpayers to pay their federal taxes electronically.
EIC - Earned Income Credit: See Earned Income Credit (EIC).
EIN - Employer Tax Identification Number: A unique nine-digit number assigned to a business entity by the Internal Revenue Service (IRS) for identification purposes.
Electronic Funds Transfer (EFT): The electronic movement of funds, often required by states and federal agencies for the payment of taxes and other employer obligations.
Eligibility Determination: The process of assessing whether a claimant meets all the prescribed conditions to qualify for a specific benefit, such as unemployment insurance.
Employee: An individual who performs services for a company under an employer-employee relationship as defined by state or federal law.
Employee Contributions: Portions of State unemployment taxes that are deducted directly from an employee's paycheck in a few states, to be combined with the employer's contributions.
Employee Leasing Company (PEO): A company that provides leased employees to businesses, handling all HR and administrative aspects of employment.
Employer: A business or organization that hires and pays individuals to perform services under an employment contract or agreement.
Employer-Allowed Fee: A fee an employer may charge an employee for processing certain legal obligations like garnishments, with the legality and amount varying by state.
Employer Contributions: Payments made by an employer to state and federal agencies, such as taxes for unemployment insurance.
Employer Tax Identification Number (EIN): A unique identifier assigned to businesses by the IRS, used for tax filing and reporting purposes.
Employer with Majority of Wages: A method used in unemployment insurance where the employer who paid the majority of an employee's wages during the base period bears the full responsibility for benefit charges.
Enforcement: The process of ensuring compliance with legal obligations such as child support orders.
ER - Employer: Abbreviation commonly used for 'employer' in business and HR contexts.
ERISA - Employee Retirement Income Security Act: Federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
Escheat: The legal process of transferring unclaimed or abandoned property, like uncashed checks, to the state government.
ETT - Employment Training Tax: A state-specific tax imposed to fund training programs for employees.
EVS - Employee Verification Service: A service matching employee records with Social Security Administration data to ensure accuracy of employee information for tax reporting purposes.
Excludable Deductions: Deductions that can be subtracted from an employee’s gross pay before calculating a lien deduction, varying by jurisdiction and type of lien.
Excludable Earnings: Income that can be deducted from an employee’s gross earnings before calculating a lien deduction.
Exempt from Withholding: Status where an employee is not subject to withholding of federal, state, or local income taxes, based on specific criteria.
Exempt Status Employee: Employees exempt from the protections of wage and hour laws, such as overtime requirements, under state or federal law.
Experience: A record of an employer's interactions with the state unemployment insurance system, including tax contributions and claims against the account.
Experience Rate: The rate of state unemployment tax assigned to an employer, based on the ratio of unemployment claims to total payroll.
Experience Rating: A method to calculate an employer's unemployment insurance tax rate based on their history of claims and employment stability.
Experience Rating Record: A record maintained by state agencies detailing an employer's unemployment tax contributions and claims history.
Experience Tax Rate: A rate assigned to an employer for unemployment contributions, determined by their record in the state unemployment compensation system.
Extended Benefits (EB): Additional unemployment compensation provided during periods of high unemployment, partially funded by federal and state sources.
Extended Unemployment Compensation Account (EUCA): A federal account used for the disbursement of extended and emergency unemployment benefits, jointly funded by state and federal governments.

F

Facial Clocking: A biometric technology that utilizes facial recognition to identify individuals for the purpose of accurately recording their times of arrival and departure. This system enhances security and efficiency in workforce management by providing a contactless, reliable method for tracking employee attendance and reducing the potential for time theft or buddy punching.
Fair Labor Standards Act (FLSA): A federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.
Family Medical Leave Act (FMLA): A federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons, such as pregnancy, adoption, family health care, or personal illness.
Federal Employer Identification Number (FEIN): A unique nine-digit number assigned by the IRS to business entities operating in the United States for the purposes of identification.
Federal Income Tax (FIT): A payroll withholding tax that employers deduct and withhold from their employees' wages based on earnings, pay frequency, exemptions, and marital status.
Federal Information Processing Standard (FIPS) Code: A numeric or alphanumeric code used to uniquely identify geographic areas, organizations, and entities in data systems.
Federal Insurance Contribution Act (FICA): A United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
Federally-Assisted Foster Care: A program that provides financial assistance for the care of children in foster homes, partially funded by the federal government.
Federal Parent Locator Service (FPLS): A federal system used to track down non-custodial parents for the purpose of obtaining child support payments and assisting in child custody and visitation cases.
Federal Reserve Bank (FRB): The central bank of the United States that provides the nation with a safe, flexible, and stable monetary and financial system.
Federal Supplemental Benefits (FSB): Additional unemployment compensation funded entirely by federal funds, provided during periods of high unemployment.
Federal Tax Deposit (FTD): A deposit made by employers to the IRS consisting of Federal Income Tax and Social Security/Medicare taxes withheld from employee wages.
Federal Unemployment Account (FUA): A fund within the Unemployment Trust Fund from which states can borrow to pay unemployment benefits when state funds are insufficient.
Federal Unemployment Tax Act (FUTA): A federal law that funds state workforce agencies and unemployment insurance through employer taxes.
Fedwire: A real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks.
FEIN - Federal Employer Identification Number: See Federal Employer Identification Number (FEIN).
FICA - Federal Insurance Contribution Act: See Federal Insurance Contribution Act (FICA).
FICA Tip Credit: A tax credit for employers who pay Social Security and Medicare taxes on their employees' tipped income.
Fields: Individual components of a database record, such as name, address, or gender, which hold specific pieces of data.
Filing Status: The tax status of an individual as determined by their marital status and specific tax laws.
Final Funds: Funds that have been transferred and cannot be recalled by the originating bank.
FIPS Code - Federal Information Processing Standard Code: Used to identify specific geographical locations, organizations, and other entities in data processing.
Fiscal Year: A twelve-month period used for accounting purposes. It varies among organizations; for the federal government, it runs from October 1 to September 30.
FIT - Federal Income Tax: See Federal Income Tax (FIT).
Flexible Spending Account (FSA): A special account funded by an employee's pre-tax earnings to pay for eligible out-of-pocket health care and dependent care expenses.
FMLA - Family Medical Leave Act: See Family Medical Leave Act (FMLA).
FPLS - Federal Parent Locator Service: See Federal Parent Locator Service (FPLS).
Fraudulent Claim: A claim filed for unemployment benefits or other social services using false or misleading information to receive benefits.
FRB - Federal Reserve Bank: See Federal Reserve Bank (FRB).
Fringe Benefit: Non-wage compensation provided to employees, such as health insurance, retirement plans, and paid time off, which may be taxable or non-taxable depending on its nature.
Frozen Wage Credits: Special provisions in state unemployment insurance laws that allow employees who were unable to work due to injury or illness to use wage credits from before their injury or illness when filing a claim.
FSDD - Full Service Direct Deposit: A service offered by payroll companies that allows employers to deposit wages directly into their employees' bank accounts.
FTD - Federal Tax Deposit: See Federal Tax Deposit (FTD).
Full Service Direct Deposit: A service allowing for the direct electronic deposit of employees' wages into their bank accounts.
Fund Balance Ratio: A ratio used to determine unemployment insurance tax rates, calculated by dividing the balance in the Unemployment Insurance Trust Fund by total wages paid in the state.
Funds Disbursement: The process of distributing funds, such as making payments for liens or other obligations.
FUTA - Federal Unemployment Tax: See Federal Unemployment Tax Act (FUTA).
FUTA Tax Return (Form 940): An annual tax form filed by employers to report federal unemployment taxes, detailing taxable wages and contributions made to state unemployment funds.

G

Garnishee: In a payroll context, an employer who is required by court order to withhold a portion of an employee’s wages to satisfy a debt or obligation.
Garnishment: A legal process in which a creditor obtains a court order requiring an employer to withhold a portion of an employee’s wages for the repayment of a debt. It includes various types such as child support, student loans, and debts to creditors like hospitals or department stores.
Genetic Testing: The analysis of DNA, typically through blood tests, to determine paternity or maternity by comparing the genetic markers of the child, mother, and alleged father.
GEO Fence: A virtual perimeter set around a real-world geographical area, used in location-based services to trigger alerts when a device enters or exits the defined area.
Goal Limit: The total amount that must be paid to satisfy a lien. Once this limit is reached, the wage deduction ceases. This limit is common in garnishments and tax levies but less so in support orders.
Gross Wages: The total amount of money paid to an employee before any deductions like taxes and retirement contributions.
Group Term Life (GTL): Employer-provided life insurance coverage, where the premium for coverage exceeding $50,000 is taxable and reported as additional income on the employee's W-2.
Guidelines: Standards or formulas set by state law for determining child support obligations based on the income of the parent(s) and other factors.

H

I

I-9 Form: A document used in the United States for verifying the identity and employment authorization of individuals hired for employment.
ID # - Identification Number: Often refers to an Employer Tax Identification Number (EIN).
Immediate Authorization to Charge: See Waiver.
Immediate Wage Withholding: The automatic deduction of child support payments from an employee's wages as soon as the support order is established.
Immigration and Naturalization Service (INS): Former U.S. federal agency responsible for the enforcement of immigration laws.
Immigration Reform and Control Act of 1986 (IRCA): U.S. legislation that prohibits employers from hiring individuals unauthorized to work in the U.S. and mandates employment eligibility verification.
Imputed Income: The value of non-cash benefits provided to an employee that is added to their taxable income for tax withholding purposes.
Income Statement: A financial document that summarizes a company's revenues, expenses, and profits or losses over a specific period, used to assess financial performance.
Independent Contractor: An individual who provides services to a company under a contract agreement, not considered an employee under federal and state unemployment laws.
Individual Retirement Account (IRA): A personal retirement savings plan available to anyone who earns income, offering tax benefits.
Initial Audit: An audit performed for new clients to ensure the accuracy of their most recent State Unemployment Insurance (SUI) tax rate, using historical tax and wage data.
Interim: Referring to the periodic filings and tax deposits made during a fiscal quarter as required by various tax agencies.
Interstate Combined-Wage Claim: An unemployment claim where wages earned in multiple states are combined, with the claim filed in one state and paid under interstate claim procedures.
Inverse Chronological Order: A method for allocating unemployment benefit charges among multiple base period employers, starting with the most recent employer and moving backward in time.
Invoice: A document sent to clients detailing charges and credits to their accounts for payroll services.
Invoice Address: The address where a client receives invoices for services rendered.
Involuntary Deductions: Deductions from an employee’s wages required by law or court order, such as taxes, child support, or garnishments.
IRA - Individual Retirement Account: See Individual Retirement Account (IRA).
IRS - Internal Revenue Service: The U.S. government agency responsible for tax collection and tax law enforcement.

J

JLN - Jurisdiction Legal Name: The legal name of a company as registered with a state agency, which may differ from the federal name used for federal tax purposes. It is used for state-specific tax deposits and filings.
Job Costing: A method of allocating time and labor costs to specific jobs or projects, enabling detailed tracking and analysis of expenses.
Job Description: A detailed document outlining the duties, responsibilities, required qualifications, and skills for a specific role within an organization. It serves as a guide for both hiring managers and candidates, ensuring clarity on the expectations and requirements of the position. Job descriptions are essential for effective recruitment, performance evaluations, and defining career paths within a company.
Joint Account Analysis (Common Rating Evaluation): An assessment conducted in certain states that allows employers to combine their unemployment insurance experience-rated accounts to achieve a lower joint tax rate. The analysis evaluates potential savings and provides guidance on implementing recommended groupings.
Joint Account (Common Rate Group): An arrangement where two or more entities in the same industry share a common unemployment insurance tax rate. This can lead to a lower overall tax rate for all members, though individual rates may vary. Approval from the state agency is required to form a joint account.
Jurisdiction: The legal authority or power that a court or governmental agency has to make legal decisions and judgments within a specific geographic area or over certain types of legal cases.

K

L

Lag Quarter(s): The quarter(s) that fall between the end of a base period for unemployment insurance and the beginning of a claimant's benefit year.
Leased Employment: See Employee Leasing.
Leave of Absence (LOA): Officially authorized time away from work, which can be either paid or unpaid, depending on the employer's policies and the reason for the leave.
Legal Entities: Organizations or business structures that have legal rights and obligations, such as corporations, partnerships, or sole proprietorships, especially relevant in payroll and legal compliance.
Legal Father: A man who is legally recognized as the father of a child, either by biological relation or through legal means such as adoption.
Legal Mother: A woman who is legally recognized as the mother of a child, either by biological relation or through legal means such as adoption.
Levy: Legal seizure of property to satisfy a debt, such as a tax levy imposed by a government agency to collect unpaid taxes.
Liability Date: The date on which an employer is required to start reporting wages and paying unemployment insurance taxes.
Liable State: A state against which an unemployment insurance claim is filed, even if the claimant is currently residing in a different state.
Lien Basis: The portion of an employee's wages that is subject to garnishment. This varies depending on the type of lien and jurisdiction, and is often based on disposable income.
Lien/Levy: Legal claims or seizures against property or bank accounts to satisfy unpaid debts or taxes.
Lien Notification: A legal document or court order specifying the details of a wage garnishment, including the amount due, payee, and start date.
Lien Type: The category of a lien, which determines its priority and method of calculation. Common types include support orders, bankruptcies, garnishments, and tax levies.
Limited Power of Attorney (LPOA): A legal document granting someone authority to act on another's behalf in specific matters or situations.
Local Income Tax: A tax levied on an employee's wages by a local government, such as a city or county.
Local Tax Rate: The percentage rate at which local income tax is withheld from an employee's wages.
Location/Department Experience Rating: An analysis used to allocate unemployment insurance costs to specific locations or departments within a company, based on their individual payroll and unemployment claim histories.
Long Arm Statute: A legal provision allowing a state to exercise jurisdiction over individuals who reside outside of the state but have relevant connections to it.
Long Term Disability (LTD): An employee benefit that provides income replacement for employees unable to work due to a long-term illness or injury.
Lookback Period: A specific time frame used to determine an employer's federal tax deposit schedule, based on their tax liability during that period.
Lower Authority Appeal: The first level of administrative appeal provided by state unemployment compensation laws for disputing unemployment insurance decisions.
LPOA - Power of Attorney: See Limited Power of Attorney (LPOA).
LTD - Long Term Disability: See Long Term Disability.

M

Magnetic Media Reporting: The use of digital formats like magnetic tape, diskette, cartridge, or electronic transfer from one computer to another for filing information with government agencies.
Mandatory Support Withholding: Court-ordered withholding from an employee's wages, typically for child support, which is usually paid directly to a court or child support enforcement agency.
Mapping: The process of linking fields or data points between different systems or datasets, crucial for data integration and migration.
Mass Partial Unemployment: A situation where a significant number of employees in a company experience reduced work hours or wages simultaneously due to a common reason.
Mass Separation Notice: A notice provided by an employer to a state agency in instances of mass layoffs, listing the employees affected and other required information.
Maximum Benefit Amount (MBA): See Maximum Benefits Payable (MBP).
Maximum Benefits Payable (MBP): The highest total amount of unemployment benefits that an individual is eligible to receive during a benefit year.
Maximum Potential Benefit Amount: The maximum amount of unemployment benefits an individual is eligible to receive under state or federal law.
Maximum Potential Duration: The longest period for which an individual can receive unemployment benefits within a benefit year or eligibility period.
Maximum Shift Time: The longest duration that a single work shift can last, often set to ensure compliance with labor regulations.
Maximum Weekly Benefit Amount (MWBA): The highest amount payable to an individual as weekly unemployment benefits under state or federal law.
Medicaid Program: A federal and state program that helps with healthcare costs for people with limited income and resources.
Medical Support: Obligations, often included in child support orders, requiring payment for medical and dental expenses of a child.
Medicare: A federal health insurance program for people aged 65 and over, and for some younger people with disabilities, funded by FICA taxes.
Merger: The combination of two or more companies into one entity, often requiring notification to state unemployment agencies.
Merger / Acquisition / Divestiture Analysis: An evaluation of the impact of business changes like mergers on the unemployment insurance experience rate, including potential savings or liabilities.
Merit Rating: A system where an employer's state unemployment insurance (SUI) rate is determined based on their history with unemployment claims after meeting certain state criteria.
Minimum Wage: The lowest hourly wage that employers can legally pay to workers, as mandated by federal or state law.
Missouri Compensation (MO Comp): A discount offered to employers in Missouri for timely remittance of income tax withheld from employees' wages.
Monetary Determination: A notice informing an individual about their eligibility for unemployment benefits based on their employment and wage history.
Most Recent Bona Fide Work: The last work undertaken by an employee with a genuine intention for it to be ongoing, from which they were separated before filing an unemployment claim.
Most Recent Employer: An unemployment insurance method where the last employer is responsible for all benefit charges. States define this differently, such as by the duration of employment or the amount of wages paid.
Multi-Jurisdiction: A feature that tracks an employee's tax/taxable information across different tax jurisdictions within a year, facilitating accurate year-end W-2 reporting for each jurisdiction.

N

NA - Not Applicable: A term used when a particular condition or requirement does not apply in a given situation.
NAC - New Account Coordinator: An associate responsible for managing the setup and implementation process for new clients, ensuring a smooth transition to new services.
NACHA - National Automated Clearing House Association: An organization that develops, administers, and governs the operating rules and business practices for the nationwide network of Automated Clearing Houses (ACHs) and for other areas of electronic payments.
Negative Reserve Balance: A situation where the unemployment benefit charges against an employer’s account exceed the contributions made, leading to a deficit. Some states may write off this negative balance, which could affect the employer's tax rate.
Negative Wage Chargeback: A charge to an employer for tax credits claimed on negative wages, which occur when adjustments to prior quarters result in negative wages for the current quarter.
Negative Wages: Wage adjustments made in the current quarter that result in a negative quarter-to-date total for an employee, often due to corrections from previous periods.
Net Pay: The amount of money an employee receives after all deductions, such as taxes and benefits, have been subtracted from their gross wages.
New Employer/Non-Merit Rate: A standard unemployment insurance rate assigned to new businesses, which generally remains in effect until the employer qualifies for an experience-based rate.
Nil: A term used to describe tax returns filed with no liability reported. Filing nil returns can be necessary to maintain active status with some tax agencies.
Non-cash Fringe Benefits: Benefits provided to employees in a form other than cash, like company cars or health insurance, which may be taxable or non-taxable depending on their nature and value.
Non-charged Benefits: Unemployment benefits paid to individuals that are not charged against any employer's account, often in special circumstances defined by state law.
Noncustodial Parent: A parent who does not have primary physical custody of their child but is financially responsible for child support.
Nonexempt Status Employee: An employee who is covered by the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).
Non-monetary Determination: A decision regarding a claimant's eligibility for unemployment benefits that is not based on financial factors, but rather on other eligibility criteria under state law.
Non-monetary Issue: A circumstance or condition that may disqualify a claimant from receiving unemployment benefits under state law, not related to wages earned.
Non-monetary Redetermination: A review and potential revision of a non-monetary unemployment claim decision, typically occurring before the appeal stage.
Nonprofit or Government Entities: Organizations that are exempt from Federal Unemployment Tax Act (FUTA) taxes but are subject to state unemployment insurance laws. These entities can choose to reimburse the state for benefits paid to former employees or pay regular unemployment taxes.
Nonqualified Plan: A retirement or benefit plan that does not meet the specific requirements set by the IRS to receive tax-favored status.
Nonresident Alien: An individual from another country working in the U.S. who does not meet the residency requirements for tax purposes but is subject to U.S. income tax on earnings from U.S. sources.
Nonresidential Parent: Another term for a noncustodial parent, referring to a parent who does not live with their child but has financial responsibilities for support.
Non-sufficient Funds (NSF): A situation where a bank account does not have enough money to cover a transaction, resulting in a failed or returned payment.
Non-trust Asset: Assets or funds that are not held in a trust or custodial account, such as direct debit fees or other operational expenses.
NSF - Non-sufficient Funds: See Non-sufficient Funds.

O

OASDI - Old Age, Survivor, and Disability Insurance: A comprehensive federal benefits program that provides retirement, disability, and survivor benefits. Funded by payroll taxes under FICA, it's often referred to as Social Security.
OBC - Official Bank Check: A check that is issued and guaranteed by a bank, often used for official transactions to ensure the reliability of payment.
Obligation: The legal requirement to pay a specific amount of money, often used in the context of child support or alimony.
Obligee: The individual or entity to whom a financial obligation is owed, such as a custodial parent or a child support enforcement agency in the case of child support payments.
Obligor: A person legally bound to pay a debt or fulfill a financial responsibility, such as an employee who is required to pay child support or a garnishment.
Offset: The process of seizing funds from state or federal payments, like tax refunds or unemployment benefits, to satisfy a debt such as unpaid child support.
Offset Credit: A credit that reduces an employer's Federal Unemployment Tax (FUTA) liability, given in exchange for state unemployment tax payments.
One-day Deposit Rule: A rule requiring employers to deposit employment taxes by the next banking day if their accumulated tax liability reaches $100,000 on any day during a deposit period.
Order: A directive issued by a court, judge, or administrative officer with the authority to make legal decisions and judgments.
OSHA - Occupational Safety and Health Administration: A federal agency responsible for ensuring safe and healthy working conditions by setting and enforcing standards and providing training, outreach, education, and assistance.
Other Compensation (Other Comp): Earnings other than regular wages, reported on an individual's tax documents. While typically reported on Form 1099 for non-employees, some types of other compensation may be included on an employee's W-2.
Overpayment: The disbursement of benefits or payments to an individual in excess of what they are legally entitled to, which may need to be repaid.
Overtime: Work performed by nonexempt employees beyond the standard hours defined by federal or state law, which must be compensated at a higher rate (e.g., time-and-a-half).
Overtime Premium: The additional pay required for hours worked over the standard workweek by nonexempt employees, typically calculated as one-half the regular rate of pay times the number of overtime hours worked.
Overtime Week: A defined period for calculating overtime pay, based on hours worked exceeding normal workweek limits.

P

PAD - Pre-Authorized Draft: A financial arrangement where an organization or individual authorizes a company to debit their bank account for agreed-upon transactions, commonly used for tax payments or service fees.
P&I - Penalty and Interest: Additional charges imposed by tax agencies for late or insufficient tax payments or filings.
Partial Claim: A type of unemployment insurance claim filed for weeks when a worker is employed but does not earn enough to exceed their weekly benefit amount due to reduced hours or wages.
Partial Unemployment: A situation where an individual is still employed but works less than full-time due to factors beyond their control, earning less than their designated weekly benefit amount.
Part-Total Unemployment: A condition where an individual works less than full-time due to lack of full-time work and earns less than their weekly benefit amount without being attached to a regular employer.
Paternity Judgment: A legal determination that identifies a particular man as the father of a child.
Pay Period: The recurring interval over which employee work hours are recorded and compensated, like weekly or monthly.
Pay Period Schedule: A system feature that automates the creation of pay periods according to predefined rules, simplifying payroll processes.
Pay Stub: A record of an employee's earnings and deductions for a specific pay period, also known as a paycheck stub or earnings statement.
Payee: The individual or entity to whom payments, such as from a wage garnishment or child support order, are made.
Payroll Compliance: The adherence to all legal and regulatory standards governing employee compensation within a jurisdiction. It involves accurately calculating wages, taxes, and deductions; adhering to minimum wage, overtime, and record-keeping laws; and timely reporting and remittance of payroll taxes to relevant authorities. Payroll compliance ensures fair treatment of employees and protects businesses from legal penalties and financial liabilities.
Payroll Cycle: The frequency at which an employer processes payroll, such as weekly, bi-weekly, or monthly.
Payroll for Small Business: A comprehensive process tailored to meet the needs of small enterprises, involving the calculation of employee wages, deduction of taxes, distribution of payments, and compliance with employment laws. This process encompasses managing employee information, accurately calculating pay based on hours worked and other compensation criteria, withholding the correct amounts for taxes and benefits, and ensuring timely payment to employees. Small business payroll also involves adhering to regulatory requirements, filing necessary reports with government agencies, and maintaining accurate records for audit purposes. Effective payroll management in small businesses is crucial for legal compliance, financial management, and employee satisfaction.
Payroll Variation (Alaska): A method used in Alaska to determine an employer’s unemployment tax rate based on the variation in their quarterly payroll.
Payroll Run: The frequency of generating individual pay stubs for employees within a pay period, including regular and adjusted payrolls.
Payroll Software: A specialized application used to automate the process of paying employees. It calculates wages, deducts taxes and other withholdings, and generates paychecks or direct deposits. This software ensures compliance with tax laws and often integrates with time & attendance systems for accurate payroll processing.
Peg Balance: The minimum balance that must be maintained in a bank account to avoid fees or penalties.
Penalty and Interest (P&I): Charges assessed by agencies for late or insufficient payments and filings.
Penalty Rate: A higher unemployment tax rate assigned to employers who are delinquent in their tax payments or filings.
Pend/Hold: The temporary suspension of unemployment benefits due to questions or issues regarding a claimant's eligibility.
Period of Employment: The time span from the first day an employee begins working for an employer until their termination.
PIN - Personal Identification Number: A unique number assigned to an individual to secure access to their accounts or sensitive information.
PIT - Personal Income Tax: A tax levied on individuals based on their income, typically collected through payroll withholding.
Plaintiff: The person or entity that initiates a lawsuit or legal action in a civil court.
POA - Power of Attorney: A legal document that authorizes an individual or organization to act on another's behalf in legal and financial matters.
Pooled Account: An arrangement in some states where non-profit organizations can combine their unemployment insurance liabilities to potentially lower overall costs.
Pooled Account Analysis: An evaluation of the pooled unemployment tax rate for employers, assessing potential tax savings or increases from participating in the pool.
Portal: A website that serves as a gateway to other online resources, providing centralized access to various services or information.
Positive Reserve Balance: A situation where the contributions to an employer's state unemployment insurance account exceed the benefits paid out.
Potential Duration: The total number of weeks for which an individual may receive unemployment benefits based on their eligibility and state or federal program guidelines.
Power of Attorney (POA): A document granting an individual or organization the legal authority to represent or act on another's behalf in financial and legal matters.
PR - Payroll: Refers to the process of calculating and distributing wages and salaries to employees.
Pre-Authorized Draft (PAD): A mechanism used to automatically debit an agreed amount from an account holder's bank account for recurring payments.
Predecessor: The original business entity before it undergoes a merger, acquisition, or other structural changes.
Pre-Note or Pre-Notification: A preliminary zero-dollar transaction used to verify the accuracy of bank account details before initiating actual financial transactions.
Private Support: Voluntary financial support arrangements between parties or at the request of an employee, often paid to third parties and typically having lower priority in wage garnishments.
Professional Employer Organization (PEO): An organization that provides comprehensive HR solutions for small and mid-size businesses, including payroll, benefits, HR, tax administration, and regulatory compliance assistance.
Property Right: The legal entitlement to unemployment benefits once a claimant meets all eligibility requirements and a valid claim is established.
Prorating: The method of allocating unemployment benefit charges proportionally among an individual's base period employers based on the wages each employer paid.
Public Assistance: Financial aid provided through programs like Aid to Families with Dependent Children (AFDC) to individuals or families based on need.
Punch Tags: Similar to cost centers but allow multiple tags to be associated with any time block, aiding in detailed job costing and reporting.
Purged: The process of removing outdated information or records from a system, often done to maintain data accuracy and security.

Q

QTD - Quarter-to-date: Refers to the period from the beginning of the current quarter up to the current date, used for accumulating financial or performance data.
QTR - Quarter: A three-month period of the fiscal year. Quarters are typically defined as Q1 (January-March), Q2 (April-June), Q3 (July-September), and Q4 (October-December).
Qualified Employer: An employer who has met specific criteria, usually related to the duration of operation and timely tax payments, and is therefore eligible for an experience-based unemployment insurance tax rate.
Quarterly Contribution and Wage Reporting: The process where employers report their payroll data to state agencies, including total and taxable wages, for determining future state unemployment insurance (SUI) tax rates.

R

RAF - Reporting Agent File: Also known as the Representative Address File, it is a record used by payroll service providers to manage tax filings and deposits on behalf of clients.
Receivable: An outstanding amount that is owed to a company for goods or services provided.
Reciprocity: An agreement between different tax jurisdictions allowing taxpayers to avoid double taxation on income.
Recon or Reconciliation: The process of verifying that payroll records and tax filings are accurate and match the deposits made during a specific period.
Regular Compensation: Unemployment benefits paid under state laws, not including extended, additional, or special allowances.
Reimbursable Employer: Organizations like nonprofits or government entities that reimburse the state unemployment fund directly for benefits paid to former employees, instead of paying regular unemployment taxes.
Remittance Sources: The origins of funds for transactions, including bank account details, currency information, and formats for checks or electronic payments.
Remuneration: Any form of compensation or payment to an employee, including regular wages, bonuses, severance pay, and other forms of earnings.
Reopened Claim: An unemployment claim filed after a break in a series of claims within a benefit year, due to reasons like illness or disqualification.
Reorganization: The restructuring of a company, which may involve changing its federal identification number or reconfiguring its corporate structure.
Replacement Check: A new check issued to replace one that was lost, stolen, or not received.
Representative Address File: See Reporting Agent File (RAF).
Requalification: The process through which an individual regains eligibility for unemployment benefits after a period of disqualification.
Reserve Account: An account in the state unemployment fund attributed to a specific employer, into which contributions are made and from which benefits are paid.
Reserve Balance: The total of contributions made to an employer's state unemployment insurance account minus any benefit charges.
Reserve Ratio: The ratio of an employer's reserve balance to its average taxable payroll, used in some states to determine unemployment tax rates.
Retroactive Pay: Compensation paid for work performed in a prior period, often due to delayed wage increases or corrections.
Returned Item: A financial transaction that is rejected or not processed due to issues such as insufficient funds or incorrect information.
Reversal: The process of correcting or reversing an erroneous Automated Clearing House (ACH) transaction.
Reverse Wire Transfer: A method of electronically transferring funds, typically used for large, time-sensitive payments.
Revised Rate: An adjusted unemployment tax rate issued when changes occur in the factors used to calculate the original rate, such as taxable payroll or benefit charges.

S

Salary: Fixed compensation paid regularly (e.g., weekly, monthly) to an employee for services rendered, irrespective of the number of hours worked.
Sarbanes-Oxley Act: U.S. legislation enacted to protect investors from fraudulent financial reporting by corporations. It includes provisions for whistleblower protection and requires public companies to adopt codes of ethics and procedures for handling reports of misconduct.
School Rate: The rate at which income tax is withheld for a particular school district.
SDI - State Disability Insurance: A state-mandated insurance program that provides temporary benefits to eligible workers who are unable to work due to a non-work-related illness or injury.
Seasonal Company: Businesses that operate or have peak activity only during certain times of the year, such as agricultural companies or holiday retailers.
Section 125: Part of the IRS code that allows employees to convert a portion of their salary into non-taxable benefits, such as health insurance premiums, thereby reducing their taxable income.
Separation Record: Documentation created by an employer detailing the reasons for an employee's termination, including any relevant disciplinary actions or statements.
Settlement Date: The date on which a financial transaction, such as a funds transfer, is completed and the money is considered transferred.
Severance Pay: Payment made to employees upon termination, usually to those who are laid off or dismissed without cause, intended to provide financial support while seeking new employment.
Shift Differential: Additional pay awarded to employees for working shifts that are considered less desirable, such as night shifts or weekends.
Short-Term Disability (STD): A type of insurance that pays a portion of an employee's salary if they are temporarily unable to work due to illness or injury.
Single Employee Mode: A setting where an individual employee uses a mobile app to track their own work hours, or a supervisor uses it to manage a crew’s time.
SIT - State Income Tax: The tax withheld from an employee's wages by the state in which they work, based on their earnings, pay frequency, exemptions, and marital status.
Social Security Administration (SSA): The U.S. government agency responsible for administering Social Security, a program that provides retirement, disability, and survivors' benefits.
Social Security/Medicare (SS/MED): The part of FICA tax that funds Social Security and Medicare programs. Both employers and employees contribute equally to these taxes.
Social Security Number (SSN): A nine-digit number issued to U.S. citizens, permanent residents, and temporary working residents that serves as an individual's taxpayer identification number.
SOD - Statement of Deposits and Filings: Documents summarizing the tax filings and deposits made by companies on behalf of its clients.
Sole Proprietorship: A business owned and operated by a single individual, with no legal distinction between the owner and the business.
Special Tax Rate: A rate assigned to an employer's account that does not result directly from the standard experience-rating method under state unemployment compensation laws.
SPLS - State Parent Locator Service: A service operated by state child support enforcement agencies to help locate noncustodial parents for establishing and enforcing child support obligations.
Spousal Support: Payments made by one spouse to another during or following a divorce or legal separation, also known as alimony.
SS/MED - Social Security/Medicare: See Social Security/Medicare (SS/MED).
Stale Dated Checks: Checks that have not been cashed or deposited within a certain period after issuance and are therefore no longer valid.
Standard Contribution Rate: The base rate of unemployment insurance contributions from which variations are calculated under a state's experience-rating system.
Standard Industrial Classification Code (SIC): A system for classifying industries by a four-digit code established by the U.S. government.
State Disability Insurance (SDI): Insurance programs managed by individual states providing partial wage replacement to eligible workers who are temporarily disabled.
State Income Tax (SIT): A tax levied by states on an employee's earnings, with withholding amounts varying based on income, payment frequency, exemptions, and marital status.
Statement of Deposits and Filings (SOD): Quarterly and annual summaries provided to clients of a payroll service provider detailing the tax filings and deposits made on their behalf.
State Parent Locator Service (SPLS): A service provided by state agencies to locate noncustodial parents for the purposes of establishing paternity and enforcing child support orders.
State Unemployment Insurance (SUI): A tax paid by employers to a state fund used to provide unemployment benefits to eligible workers.
Status Change: Any modification in the type of tax filing services provided by a payroll service provider, affecting the responsibilities for depositing and filing taxes.
STD - Short Term Disability: See Short-Term Disability (STD).
Stoppage of Work: A significant reduction in the normal operations of an employer, often due to a labor dispute.
Strategic Human Resource Management (SHRM): An organizational approach to human resource management designed to align human resources policies and practices with the strategic objectives of the company. SHRM integrates HR strategy with business strategy to foster innovation, flexibility, and competitive advantage, focusing on long-term workforce planning, talent management, performance improvement, and organizational development to enhance overall business performance.
Subject To: A phrase indicating that wages or other forms of compensation are liable for taxation or other legal obligations.
Subsidiary: A company that is controlled by another company, known as the parent company, but has its own legal identity and tax filings.
Successor: A business entity that takes over another business, either partially or entirely, often in the context of mergers or acquisitions.
SUI - State Unemployment Insurance: See State Unemployment Insurance (SUI).
SUI Exempt: Refers to employers, typically non-profit organizations, that are exempt from paying state unemployment insurance taxes

T

Tags: Keywords or phrases used to categorize and retrieve content in a meaningful way, often used in digital organization and search functionalities.
Tax: In the context of TimeTrex's Tax Filing Service, this refers to the actual funds withheld from an employee or employer that are due to a tax agency.
Taxable: The portion of wages or compensation that is subject to taxation and used to calculate the tax due.
Taxable Fringe Benefit: The value of certain non-cash fringe benefits considered part of an employee’s compensation. Employers generally must withhold income tax on these benefits.
Taxable Payroll: The total amount of wages that are subject to unemployment insurance taxes.
Taxable Wage Base: The maximum amount of an employee’s earnings that are subject to Social Security, FUTA, and state unemployment insurance taxes in a given year.
Tax Audit: A report verifying the accuracy of the most current state unemployment insurance (SUI) tax rates assigned by the state agency.
Tax Bracket: The level of income tax imposed on an individual, determined by the amount of tax paid on the final dollar of taxable income.
Tax Levy: The legal seizure of a portion of an employee's wages to satisfy unpaid taxes, either to the IRS or state tax authority.
Taxpayer Identification Number (TIN): A number used to identify a taxpayer in financial transactions, which can be a Social Security Number, Employer Identification Number, or an Individual Taxpayer Identification Number.
Tax Rate: The percentage assigned to an employer by a state agency to calculate the amount of unemployment tax owed.
Tax Rate Analysis: An analysis comparing unemployment tax rates across different years to calculate potential savings or losses.
Tax Rate Notice: An annual statement issued by state agencies indicating the unemployment tax rate assigned to an employer for the upcoming year.
Tax Rate Projection: An analysis used by employers for budgeting, projecting the state unemployment insurance (SUI) tax rate for the upcoming year.
Tax Rate Verification: The process where TimeTrex verifies the accuracy of the SUI tax rate and its components, and protests any errors to the state agency.
Tax Service: A service offered by TimeTrex to large businesses for handling various aspects of tax filing and compliance.
Tentative Credit: A credit applied when State Unemployment Insurance (SUI) wages are less than Federal Unemployment (FUTA) wages.
Time Card Calculator: An automated tool designed to calculate the total work hours logged by an employee, factoring in start and end times, breaks, and overtime. It simplifies payroll processing by providing an accurate tally of hours worked, aiding employers in adhering to wage laws and employees in verifying their work hours for accurate compensation. This calculator is essential for efficient time management and labor compliance in various work settings.
Time & Attendance Software: A digital tool used by businesses to track and record employee work hours. This software often includes features for scheduling, leave management, and overtime calculation, streamlining the process of managing employee attendance and ensuring accurate timekeeping for payroll purposes.
Timesheet Cells: Sections within a digital timesheet where time entries or punches are recorded.
Third Party Sick Pay (3PSP): Disability insurance benefits paid by a third party, like an insurance company or state disability plan, providing partial or full wage payments to employees on long-term medical leave.
Tipped Employee: An employee in a service position, such as food service or personal care, who regularly receives tips as part of their compensation.
Transaction Date (Payment Date): The date on which employees receive their pay, either through direct deposit or physical checks.
Transfer of Experience - Total or Partial: See Merger/Acquisition/Divestiture Analysis.

U

UCM - Unemployment Compensation Management: A service that helps employers manage and respond to unemployment insurance claims, aiming to control state-assigned SUI (State Unemployment Insurance) rates and minimize costs.
UIFSA - Uniform Interstate Family Support Act: A law that standardizes the rules for establishing and enforcing child support orders across states, preventing multiple or conflicting orders for the same child.
Unemployment Compensation for Federal Employees (UCFE): A federal program providing unemployment benefits to former federal employees, as established under Title 5 of the United States Code, Chapter 85.
Unemployment Compensation for Ex-Military (UCX): A federal program that offers unemployment benefits to former military personnel, also governed by Title 5 of the United States Code, Chapter 85.
Unemployment Compensation Services (UCS): A comprehensive service designed to manage the entire unemployment compensation process for employers, from claims management to controlling premium costs.
Unemployment Compensation (UC or UI): Benefits provided under state or federal programs to individuals who are unemployed through no fault of their own, based on their previous wages in eligible employment.
Uniform Base Period: A standardized time frame used to determine eligibility for unemployment benefits, usually consisting of the first four of the last five completed calendar quarters prior to filing a claim.
Uniform Benefit Year: A fixed one-year period during which an individual may receive unemployment benefits, starting on the same date for all claimants in a state.
Uniform Duration: A policy under state unemployment laws where all eligible claimants are entitled to the same maximum number of weeks of benefits.
URESA - Uniform Reciprocal Enforcement of Support Act: A law that provides a legal framework for establishing and enforcing child and spousal support obligations when the involved parties live in different states.
User Interface (UI): The visual and interactive elements of a software application or website through which users interact with the system.

V

Vesting: A provision under ERISA (Employee Retirement Income Security Act) that requires employee benefits, such as pension or profit-sharing plans, to be fully entitled to the employee within a certain period, regardless of their employment status with the employer.
Visitation: The legally granted right of a non-custodial parent to spend time with their children following a divorce or separation.
Voluntary Contribution: Payments made by employers into their state unemployment insurance account, in addition to regular contributions, to potentially lower their future tax rate.
Voluntary Contribution Analysis: An evaluation to determine whether making a voluntary contribution to the state unemployment insurance fund is cost-effective for an employer.
VPDI - Voluntary Plan Disability Insurance: An option in some states allowing employers or individuals to purchase private disability insurance instead of participating in the state's disability insurance program.

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W-2: An annual statement provided by employers to employees, detailing the employee's earnings and taxes withheld. It is essential for filing federal, state, and city income tax returns.
W-3 - Transmittal of Income and Tax Statements: A summary form that accompanies the W-2 statements sent to the Social Security Administration, showing a company's total wages and tax withholdings.
W-4 - Employee's Withholding Exemption Certificate: A form used by employees to indicate their tax withholding preferences, including exemptions and dependents.
Wage and Separation Report: A document used by state agencies to collect information from employers about the wages paid to a claimant and the reasons for their separation from employment.
Wage Assignment: A voluntary agreement by an employee to transfer a portion of their wages for specific purposes, such as loan repayments or insurance premiums.
Wage Attachment: An involuntary deduction from an employee’s wages for payments such as child support, tax levies, or creditor garnishments.
Wage Base: The maximum amount of an employee's earnings subject to various types of taxes and contributions.
Wage Claim Penalty: A penalty imposed by a State Unemployment Insurance agency for an employer's failure to respond timely to an unemployment claim.
Wage Credits: Earnings accumulated by individuals in employment covered by State unemployment compensation laws.
Wage Detail: Information typically included in quarterly wage reports to state agencies, detailing employee earnings and hours worked.
Wage Garnishment Processing Service: A service that automates the calculation, deduction, and disbursement of employee wage garnishments.
Wage Record: An employee's record containing their name, Social Security number, wages, and hours worked.
Wage Report: A quarterly report submitted by employers, listing each employee's earnings and hours worked.
Wages: Compensation paid to employees for their work or services.
Wage Withholding: Automatic deductions from an employee’s wages for various obligations such as child support or tax liabilities.
Waiting Period: A specified time during which a claimant must fulfill eligibility requirements for unemployment benefits but does not receive payment.
Waiver: Authorization given to a payroll service provider to debit additional taxes from a client's account without delay.
Weekly Benefit Amount (WBA): The amount paid to a claimant for a week of total unemployment under unemployment insurance.
Weekly Earnings Allowance: The maximum amount an unemployment claimant can earn in a week without reducing their benefit amount.
Week of Partial Unemployment: A week where an employee works less than their regular full-time hours due to lack of work and earns less than their unemployment benefit amount but more than the state's earnings allowance.
Week of Unemployment: Any week during which an individual is totally or partially unemployed.
Weeks Claimed: The number of weeks for which unemployment benefits are requested through continued claims.
Weeks Compensated: The number of weeks for which unemployment benefits are paid.
WGPS - Wage Garnishment Processing Service: See Wage Garnishment Processing Service.
Wire Transfer: A method for electronically transferring funds, either initiated by the client (direct wire transfer) or by the payroll service provider (reverse wire transfer).
Withholding Allowances: Claimed by employees on their W-4 form, these allowances reduce the amount of wages subject to federal income tax withholding.
Withholding Rate: The percentage rate at which taxes are withheld for a specific taxing jurisdiction.
Witness: A person who provides testimony in a legal proceeding. This includes firsthand witnesses to events leading to an employee's separation, as well as experts who can provide relevant information.
Wizard: A user-friendly TimeTrex tool that guides users step-by-step through complex tasks, simplifying the process.
Worked In: The city or location where an employee performs their work.
Workers' Compensation: State-mandated insurance providing benefits to employees who suffer job-related injuries or illnesses.
Workforce Management App: A mobile or web-based application designed to enhance the management of an organization's mobile workforce by providing real-time access to essential tools and information. This app integrates functionalities such as scheduling, time tracking, dispatching, real-time communication, location monitoring, and performance analytics. It enables managers and employees to coordinate more effectively, ensuring that tasks are completed efficiently and on time. The app supports operational agility, improves employee satisfaction through better communication and flexible scheduling, and offers insights for data-driven decision-making, thereby optimizing the productivity and efficiency of the mobile workforce.
Workforce Management (WFM): A strategic approach to optimizing the productivity and efficiency of an organization's workforce through effective labor forecasting, scheduling, time and attendance tracking, compliance management, and performance analysis.
Workforce Management Software: A comprehensive system designed to optimize employee productivity and efficiency in an organization. This software includes functionalities for scheduling, time and attendance tracking, labor forecasting, and performance management, aiding in the strategic alignment of workforce resources with business goals.
Work Hours Calculator: A digital tool utilized for tracking and calculating the total hours an individual works over a specified period, including regular hours, overtime, and breaks. It aids employees and employers in accurately determining work hours for payroll, project management, and personal time management. This calculator can also assist in ensuring compliance with labor regulations by accurately recording working hours.
Work Sharing: An employer program to avoid layoffs by reducing work hours for a group of employees, who may then receive partial unemployment benefits.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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HR & Payroll Glossary of Terms

Human Resources and Payroll Glossary of Terms

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