Pay Stub Abbreviations from All Major Payroll Companies

The legally-required amount an employer must withhold from an employee’s wages to satisfy a spousal support order from the court. Often abbreviated as YTD, year-to-date represents the total sum for the year. This can be an employee’s earnings, a company’s profit, tax payments, or any other payroll expense. Monitoring your YTD figures is essential for budgeting and ensuring compliance with tax and benefit obligations. A tip credit is a provision that allows employers to count a portion of employees’ tips toward their minimum wage obligations.

Employer Identification Number (EIN)

A type of ACH payment that allows employers to transfer employees’ wages directly into their bank accounts, thereby avoiding paper checks. Per federal law, these hours are paid 1.5 times the employee’s regular hourly pay rate. A pay period is the time frame of work for which you’re paying an employee. If you pay every other Friday, the pay period could be from the prior two weeks, with the last day being the Friday that’s also payday.

You don’t have to be an expert to know that both you and your employees pay FICA taxes or that all W-2s should be mailed by January 31. expert advice synonyms By implementing payroll terms into your vocabulary, you make it easier to digest related laws and concepts. Workers’ compensation is an insurance program that provides benefits to employees who suffer job-related injuries or illnesses.

Pay stubs are important for employees because it has your earned income and taxes deducted from your paycheck which helps you get your final net pay. Many people use pay stubs to verity their income for a house, apartment, car, or loan. Garnishment is a legal proceeding authorizing an involuntary transfer of an employee’s wages to a creditor to satisfy a debt. Child support is a garnishment that is often placed when couples divorce and one does not pay as agreed in a divorce decree.

Includes guidance on handling both employer and employee federal payroll taxes. Additional pay an employee receives on top of their regular wages or salary, often as an incentive or reward for good performance. Most bonuses are discretionary, meaning they are given at the sole discretion of the employer and not because employees expect to receive them. A network that enables the rcf facility agreement definition electronic transfer of funds, from one bank account to another.

Gross pay

An annual period during which employees can update their health insurance and benefits enrollments. A process in which employees are paid outside the normal payroll schedule. State laws, however, differ; difference between assets and plant assets for instance, California requires employers to provide at least 24 hours (three days) of paid sick leave each year. Retirement benefits are voluntary benefits provided to employees to help them secure their financial future. Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are tax-advantaged accounts for medical expenses. FSAs are employer-established, whereas HSAs require a high-deductible health plan.

Paid Time Off (PTO)

Compensation is the funds paid to a person for their services or to make up for loss or injury; the latter is typically court-ordered. A documented contingency plan for managing payroll when disaster or unforeseen emergencies strike. An employer-provided benefit which is so small in value that accounting for it would be administratively impractical or unreasonable. Includes occasional coffee, snacks, doughnuts, flowers, fruit, books, etc.

Employee Assistance Program (EAP)

1. These payments need to be shared with the employer and recorded on the employer’s tax returns, including employee W-2s.
2. In large food and beverage establishments, if all reported tips are less than 8% of the total gross sales, the employer must allocate the difference.
3. It’s vital to accurately track working hours to ensure fair payment and compliance with labor laws, especially overtime.
4. If any of the information on your paystub seems incorrect or you don’t understand, you can contact your payroll department and have them correct it or explain it to you.
5. A documented contingency plan for managing payroll when disaster or unforeseen emergencies strike.
6. Additional pay an employee receives on top of their regular wages or salary, often as an incentive or reward for good performance.

The State Unemployment Tax Act (SUTA) tax is a payroll tax that states require employers to pay in order to provide unemployment benefits. Taxable wage base is the maximum amount of employee compensation subject to Social Security, FUTA, and state unemployment insurance taxes. Garnishments are often court-ordered deductions from an employee’s wage to pay for things like child support, back taxes and defaulted debt. Base pay rate is only the wages paid to an employee for their work, which is often broken down as an hourly, monthly or annual salary. The length of time for which employees are paid, based on their pay frequency. For example, a weekly pay period may start on Sunday and end on Saturday.