| one-day deposit rule |
if an employer's accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next banking day |
| originating depository financial institution (ODFI) |
a financial institution that is qualified to initiate direct deposit entries submitted by an employer as part of the direct deposit process
|
| overtime |
hours worked by nonexempt employees in excess of maximums set by federal or state law that must be compensated at a premium rate of pay (e.g., under the FLSA, all hours worked over 40 in a workweek must be paid at not less than 150% times the employee's regular rate of pay) |
| overtime premium |
amount equal to one half of an employee's regular rate of pay times all overtime hours worked |
| paid time off |
payment received for time not worked due to holiday, illness, vacation, jury duty, bereavement, or the failure of the employer to provide sufficient work |
| payroll expense |
expense that may be recorded in the payroll expense journal by function or by type of pay |
| payroll register |
report listing and summarizing the compensation paid and deductions taken from each employee's wages for the payroll period |
| percentage method |
one allowable method for calculating federal income tax withholding from an employee's wages, most often used when the calculation is automated |
| percentage method for advance EIC payments |
one allowable method for calculating the amount of advance EIC payments, most often used when the calculation is automated |
| pieceworker |
worker who is paid per unit or piece produced |
| posting |
recording a transaction in a journal entry or recording a journal entry in the general ledger |
| private delivery service |
delivery service which may meet IRS criteria for submitting tax forms |
| profit |
occurs when income exceeds costs and expenses |
| qualified plan |
a benefit plan that meets IRS qualification requirements for tax-favored treatment (e.g., nondiscrimination) |
| quarterly |
once every three months or four times per year |
| reasonable basis |
a standard used to determine whether a worker can be treated as an independent contractor whether or not the common law test is mat, based on prior court and administrative rulings, IRS audits, or long-standing practice in the industry |
| reconcile |
to ensure that amounts withheld, deposited, paid, and reported by employers agree with each others and, if they do not, to determine the reasons and make the necessary corrections |
| reconciliation |
process of ensuring that amounts withheld, deposited, paid, and reported by employers agree with each other and that is they do not, determining the reasons and making the necessary corrections |
| regular rate of pay |
hourly pay rate determined by dividing the total regular pay actually earned for the workweek by the total number of hours worked |
| reimbursed expense |
payment for business-related expenses incurred by an employee on behalf of, or for the convenience of, the employer |
| remuneration |
payment for services, including benefits |
| retained earnings |
amount that a company's revenue exceeds its expenses, reduced by any amount returned to the owners |
| retroactive pay |
pay for time worked in a previous workweek; retroactive pay must be applied to both regular and overtime hours |
| revenue |
income received for goods and services provided by an organization |
| revenue account |
identifies amounts received for goods sold and services rendered during the accounting period |
| safe-harbor |
an IRS-approved alterntive method (usually a short-cut) for complying with IRS rules, regulations, and procedures (for example, per diem allowances and high-low substantiation) |
| semi-annual |
twice per year or once every six months |
| semimonthly |
twice per month; type of payroll period |
| severance pay |
a payment made by an employer to terminated employees (usually those who are terminated through no fault of their own) that is designed to tide them over until new employment is secured |
| shift differential |
extra pay received by employees for working a less-than-desirable shift (e.g., evenings or late nights) |
| sick pay |
replacement wages paid to an employee who cannot work because of an illness or injury that is not work-related |
| simplified employee pension (SEP) |
an individual retirement arrangement (IRA) with special participation requirements that is available to certain small employers |
| social security |
Old Age, Survivors, and Disability Insurance (OASDI) component of FICA |
| Social Security Administration (SSA) |
the federal government agency that administers social security
|
| social security number (SSN) |
an individual's taxpayer identification number; it consists of nine digits in the format 000-00-0000 |
| statement of cash flow |
financial statement that shows the sources and uses of cash during the accounting period |
| statutory employees |
special groups of employees identified by law (for example, full-time life insurance sales-peoples or certain homeworkers) whose wages are not subject to FITW, but are subject to FICA and FUTA |
| subsidiary ledger |
replaces a journal; summarized entries are posted from the subsidiary ledgers directly to the general ledger; arose with the computerizations of monst companies' accounting systems |
| supplemental wages |
compensation received by employees other than their regular pay; such as bonuses, commissions, and severance pay; income tax may be withheld from such payments at a flat rate under certain circumstances |
| system edit |
warning or alert built into computer software; a system edit checks for errors and either corrects them or notifies the operator that something may be wrong; system edits generally check for calues outside accepted ranges (e.g., negative net pay) |