Glossary of Payroll Terms SMU Southern Methodist University

short term disability

Defined contribution plan in which the employer contributes to a fund that invests primarily in company stock and makes distributions to employees in stock or cash. Plan designating a specific age, length of service, or combination of both at which plan participants may retire and receive all accrued benefits, minus a reduction or penalty. Account whereby an employee allocates a declared pretax amount from his or her pay, up to a set limit, for out-of-pocket qualified dependent care expenses. Total number of working days lost during a work stoppage in a given month, multiplied by the number of workers participating in the work stoppage. National survey that samples approximately 60,000 households monthly and collects information on labor force characteristics of the U.S. civilian noninstitutional population. Portion of labor productivity change attributed to information capital.

  • FUTA is a federal law that guides the administration of unemployment compensation programs and requires all eligible employers to pay a federal unemployment tax.
  • Efficiency at which capital services are utilized in producing output of goods and services, measured as output produced per unit of capital services input.
  • A deduction from an employee’s wages that is taken out after all applicable taxes and pretax deductions have been withheld is called an after-tax deduction.
  • Generally, ADP-UCS will act as address of record for clients utilizing the UCM and Total Tax Plus services.
  • Our list of payroll terms, tax forms, and their definitions will make running payroll with Square Payroll a painless experience.

Often employers choose to allow the employee to earn a certain amount of time per pay period. Total number of hours worked by wage and salary workers, unincorporated self-employed workers, and unpaid family workers to produce output. Employee-owned portable account that uses tax-exempt contributions to pay for medical expenses.

Retroactive Pay

A Payroll Vocabulary‘s payroll is a complete list of everyone who works there and how much money they make. The small coffee shop where you work might have just four employees on its payroll. Non-eligible jobholders have a right to opt in to the pension scheme. If they choose to join a pension scheme, the employer must make a contribution as well. This means they can join a scheme, but there is no obligation on the employer to make a contribution to the pension, unless scheme rules dictate there must be one. QW or Qualifying Week is a term used within SMP, it is the 15th week before the week the baby is due.

What is payroll structure?

Payroll structure is the details of the salary that have been offered in terms of the breakup of different components constituting the compensation. Knowledge of the components is very crucial to the employee as he gets an idea about how much goes into forced savings and what kind of tax exemptions to claim.

This period may vary depending on how often an employee is paid – weekly, monthly or other intervals. PILON or payment in lieu of notice is a payment made to employees by an employer for a notice period that they have been told by the employer that they do not have to work. The Employment Rights Act set out the rights of employees in situations such as dismissal, unfair dismissal, parental leave, and redundancy. It governs what employers can expect from employees, what employers can ask employees to do, and employees’ rights at work.

Non eligible Jobholder

The HSA is funded by employees via pre-tax payroll deductions. There are annual limits on the amount that can be contributed to an HSA but, unlike an FSA, unused funds are not forfeited. A federal tax paid by employees and employers consisting of social security tax and medicare tax. Minimum wage is the lowest hourly pay rate you’re legally allowed to pay an employee. Per the Department of Labor , the federal minimum wage rate is currently $7.25 an hour, but state rates vary.

The Business Legal Terms You Need to Know –

The Business Legal Terms You Need to Know.

Posted: Tue, 21 Feb 2023 08:00:00 GMT [source]