An accounting package is a type of business software designed to help businesses manage their accounting processes including invoicing, payroll, accounts payable, accounts receivable, and general ledger functions.
Back pay refers to compensation owed to an employee for work performed in a previous pay period, typically resulting from payroll errors, disputes, or legal settlements.
A cafeteria plan allows employees to choose from a variety of fringe benefits, including cash, without including the chosen benefit in their gross income for tax purposes.
An IRS publication that provides instructions for employers concerning employment tax withholding amounts and procedures.
A comprehensive breakdown of the term 'clock card,' its uses, examples, related terms, and guidance for further study.
Compensation refers to the direct and indirect monetary and nonmonetary rewards provided to employees in recognition of the value of their job, their personal contributions, and their performance. These rewards must align with the organization's ability to pay and comply with relevant legal guidelines.
Data processing is a class of computing operations that manipulate large quantities of information. It forms a major use of computers in business operations such as bookkeeping, printing invoices, payroll calculations, and general record keeping.
A financial arrangement where funds, such as dividends or salaries, are electronically transferred directly into a recipient's bank account, bypassing the need for physical checks.
Double time refers to a payment condition in which employees are paid twice their regular hourly rates for specific types of work, including overtime, Sundays, or holidays.
Gross earnings refer to an employee's salary or wages before any deductions for taxes, Social Security, and employee benefit contributions are made.
Holdback pay refers to wages or salary withheld from an employee by the employer until a specific condition is fulfilled. This may happen due to the time necessary for payroll computation or as security against cash advances or tools lent to an employee.
A pay period is the time duration during which an employee's earnings are calculated to ensure accurate and timely payments. This duration can vary from a week, half a month, to an entire month.
A paycheck is a check used to pay an employee's wages, containing net wages after deductions for federal and state income taxes, Social Security, union dues, and other benefit adjustments.
Payday refers to the specific day set by employers on which employees receive their wages or salaries, typically in the form of paychecks or direct deposits into their bank accounts.
Payroll is the aggregate periodic amount a business pays its workers and a list of employees along with their compensation.
Remuneration is a sum of money paid for services given, encompassing both salaries and wages.
Retroactive refers to any policy, payment, or legal effect applied to a prior time period. For instance, retroactive pay can be granted based on the provisions of a new collective bargaining agreement for work completed before or at the start of the new contract's implementation.
Semi-monthly refers to an event or action that occurs twice each month. This term is often used in payroll and billing cycles.
Extra compensation paid as inducement to accept shift work, especially during evening and midnight hours.
The standard wage rate refers to the normal or base salary of an employee before any overtime or premium pay is computed. It is vital for setting and managing payroll expenses within an organization.
Straight time refers to the standard time or number of work hours established for a particular work period. An employee working straight time is not being paid overtime.
Supplemental wages include bonuses, commissions, overtime pay, and certain [SICK PAY]. An employer can withhold income tax at a flat 25% rate or use the same method as for regular wages.
A time card (or clock card) is a tool used to record the amount of time an employee spends at work or on a particular job. It typically logs the start and end times, providing a mechanism to calculate the total elapsed time.
A timekeeper is responsible for recording and monitoring the working hours of employees, ensuring accurate time records for payroll and compliance.
Under-Withholding refers to a situation where taxpayers have insufficient federal, state, or local income tax withheld from their wages, potentially resulting in tax liability upon filing returns and incurring penalties and interest.
Learn about the Unemployment Insurance Tax which is deductible as a business expense for employers and understand its implications and relation to the Federal Unemployment Tax Act (FUTA).
Vacation pay refers to the compensation provided to employees during their vacation leave. It can also include amounts paid even if the employee opts not to take a vacation.
The W-4 Form is used by new employees and existing employees who wish to change the number of personal exemptions claimed for tax withholding purposes. This form directly impacts the amount of federal income tax withheld from an employee's paycheck.
An in-depth exploration of wages, including definitions, examples, FAQs, related terms, references, and further reading.
The administrative procedure of establishing and supervising wage levels and operations within an organization to ensure fair compensation practices.
The highest pay possible within a particular wage bracket, agreed upon as the upper range, commonly used in salary negotiations and organizational pay structures.
Wages refer to the remuneration paid to hourly paid employees for the work done, typically based on the number of hours spent at the place of work.
Withholding refers to the portion of an employee's wages retained by the employer for the purpose of paying various taxes, insurance plans, pension plans, union dues, and other deductions.
