Workforce & Finance Glossary for Employers
It's easy to get lost in the business lingo of HR, payroll, finance, and IT. Let our Workforce & Finance Glossary light the way! Browse by category, alphabetically, or use the search bar.
We regularly update our glossary to keep up with the fast-changing world of work. Bookmark it for quick reference — whether you’re a workforce specialist or building your own business.
#
401(a) plan
An employer-sponsored retirement savings plan for public-sector and nonprofit workers.
401(k) true-up
An extra employer contribution to an employee’s retirement plan to fulfill annual matching requirements.
403(b) plan
A retirement savings plan designed for public and tax-exempt entities, often offered alongside 401(a) plans.
a
c
COBRA Insurance
Coverage that lets individuals temporarily keep sponsored benefits after they’d normally end.
Cafeteria Plan
A type of benefits arrangement that allows workers to choose from several pre-tax benefits.
Compensatory time off (CTO)
Paid leave for overtime hours worked, offered in lieu of traditional overtime wages.
d
e
Employee Assistance Program (EAP)
A counseling service offered by employers to help employees with personal or work-related problems.
Employer mandate (ACA)
An ACA provision requiring large employers to provide a minimum level of affordable health insurance.
Experience Rating System
A ranking system representing how likely an employer is to generate insurance claims.
Extended Illness Bank (EIB)
A benefit that provides additional paid leave due to an extended illness or severe injury.
f
Flexible spending account (FSA)
A pre-tax, “use-it-or-lose-it” savings account for covering qualified expenses.
Fringe Benefits
Supplementary compensation that employees receive on top of their normal wages.
Full-Time Equivalent (FTE)
A labor metric representing the total hours of all part-time staff in relation to a full-time employee's hours.
h
Health reimbursement arrangement (HRA)
A benefits plan that uses employer contributions to reimburse eligible healthcare expenses.
Health savings account (HSA)
A savings account that allows employees to use pre-tax income to cover qualified medical expenses.
Highly compensated employee (HCE)
A worker classification subject to special retirement savings and overtime eligibility rules.
i
m
o
Old-age, survivors, and disability insurance (OASDI)
The formal or official name for what's commonly known as Social Security taxes.
Open Enrollment
An annual period during which employees can update their health insurance and benefits enrollments.
Outplacement
An employer-funded career service that helps departing employees find a new job.
p
PTO Payout
A payment to an employee for their accrued, unused paid time off (PTO), typically upon leaving the company.
Paid Time Off (PTO)
Time away from work during which employees are still paid their normal wages.
Premium only plan (POP)
A benefit plan that allows employees to pay their health insurance premiums with pre-tax income.
q
Qualified deferred compensation plan (QDCP)
An employer-sponsored retirement plan that meets all federal law requirements for deferred taxation.
Qualified small employer health reimbursement arrangement (QSEHRA)
A benefits plan for small employers that uses contributions to reimburse eligible healthcare expenses.
Qualifying life event (QLE)
A life change that allows an employee to enroll in or modify benefits outside open enrollment.
s
Safe harbor (ACA)
Methods for demonstrating a health care plan’s affordability under the Affordable Care Act.
Special Enrollment Period (SEP)
A window outside Open Enrollment to enroll in, change, or renew medical insurance coverage.
State disability insurance (SDI)
A government-run program that gives short-term disability benefits to employees.
Summary Plan Description (SPD)
A plan document outlining participant and beneficiary rights, benefits, and responsibilities.