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.
a
Accrued Payroll
The total income and benefits employees have earned but not yet received.
Arrears
An amount of money that’s intentionally or accidentally paid after it’s owed.
Automated Clearing House (ACH)
A nationwide electronic network for transferring funds between individuals and organizations.
c
Certified Payroll
A payroll report submitted by government-funded contractors to prove employees receive fair pay.
Constructive Receipt
The concept that income is taxable, even if the taxpayer hasn't yet physically received it.
Cost-of-Living Adjustment (COLA)
A financial mechanism designed to help income keep pace with rising costs of goods and services.
Credit Reduction State
A state that’s lost access to the full federal unemployment tax credit due to unpaid federal loans.
d
e
Earned Wage Access
A financial service that allows employees to access earned wages before their next scheduled payday.
Electronic Federal Tax Payment System (EFTPS)
A service for making and scheduling federal tax payments to the IRS online or by phone.
Employer Identification Number (EIN)
A unique nine-digit number assigned to businesses by the IRS for use in tax filings or other documents.
Excess Wages
The amount of an employee’s annual income that exceeds the taxable wage base.
Exempt Wages
Portions of an employee’s income that aren’t taxable for a variety of reasons.
f
Federal Income Tax (FIT)
Required payments to the U.S. government based on taxable income earned in a single year.
Federal Income Tax Withholding (FITW)
An amount deducted from each paycheck to prepay federal income taxes.
Federal Insurance Contributions Act (FICA)
Federal payroll taxes used to fund Social Security and Medicare programs.
Federal Unemployment Tax Act (FUTA)
The U.S. law that created federal payroll taxes for funding unemployment programs.
Franchisee
An individual or entity that operates and sells products under a parent company's name.
Franchisor
A business that grants others the rights to sell products or services in its name.
Furlough
Temporary unpaid leave often required due to economic issues, lack of work, or other operational needs.
g
i
l
n
o
p
Pay Compression
When employees receive the same pay despite having different levels of experience, skills, or qualifications.
Pay Equity
The idea that employees doing the same work should receive the same pay, regardless of demographics.
Pay Period
The timeframe employers use to calculate wages and issue timely, accurate paychecks.
Pay Stub
A summary of an employee’s gross pay, deductions, and take-home wages for a given pay period.
Payroll Ledger
A tool used to record and track an organization's employee and contractor payment data.
Payroll Register
A comprehensive record of each employee’s payroll and wage data for a given pay period.
Per Diem
A daily allowance paid to employees to cover the cost of travel-related expenses for work.
Positive Pay
A fraud detection tool that matches employer-issued paychecks against a list of authorized checks.
Pre-Tax Deductions
Payroll withholdings taken before taxes are calculated and applied to gross wages.
Prevailing Wage
A standardized rate for wages and benefits government contractors or foreign laborers must pay workers.
r
s
Salary Band
A framework establishing the maximum and minimum pay a group of similar roles can earn.
State Disability Insurance (SDI)
A government-run program that gives short-term disability benefits to employees.
State Income Tax (SIT)
Required payments to a state government based on taxable income earned in a single year.
State Income Tax Withholding (SITW)
An amount deducted from each paycheck to prepay state income taxes.
State Unemployment Insurance (SUI)
A state-based payroll tax that funds unemployment efforts for those without a job.
State Unemployment Tax Act (SUTA)
A state-based payroll tax that funds unemployment efforts for those without a job.
Supplemental Income
Additional income or compensation employees receive in addition to their normal wages.
t
w
Wage Base Limit
The maximum amount of taxable income on which an employee must pay taxes in a given year.
Wage Garnishment
When an employee’s gross pay is deducted and sent to a creditor to pay off that employee’s debt.
Workweek
A period of seven consecutive 24-hour periods that define the hours an employee is expected to work.