| A | B |
|---|
| payroll | the total amount earned by all employees for a pay period |
| salary | the money paid for employee services |
| pay period | the period covered by a salary payment |
| payroll clerk | employee responsible for preparing the payroll including making sure employees are paid on time, employees are paid the correct amount, completing payroll records, submitting payroll reports and paying payroll taxes. |
| gross earnings | the total pay due for a pay period before deductions |
| hourly wage | an amount of money paid to an employee at a specified rate per hour worked |
| time card | basic source of information to prepare a payroll which includes an accurate record of the time each employee has worked |
| commission | an amount paid to employee’s based on a percentage of the employee’s sales for the period |
| piece rate | a method of payment where an employee is paid a specific amount of money for each item the employee produces |
| overtime rate | rate set by the Fair Labor Standards Act of 1938 that is 1 ½ (1.5) times the employee’s regular hourly pay rate |
| deduction | an amount subtracted from gross earnings |
| withholding allowance | a deduction from total earnings for each person legally supported by a taxpayer, including the employee |
| form W-4 | employee’s withholding allowance certificate that reflects the employee’s marital status and number of allowances the employee claims. Used to determine amount of federal income tax withheld from employee’s wages |
| social security tax | a federal tax paid for old-age, survivors, and disability insurance |
| medicare tax | a federal tax paid for hospital insurance |
| tax base | the maximum amount of earnings on which a tax is calculated |
| payroll register | a business form used to record payroll information |
| net pay | the total earnings paid to an employee after payroll taxes and other deductions |
| employee earnings record | a business form used to record details affecting payments made to an employee |
| accumulated earnings | total gross earnings by an employee over a period of one year. Often referred to as year-to-date earnings |
| salaries expense | the expense account often used to record employees’ earnings |
| unemployment taxes | employer payroll tax expense paid to federal and state unemployment agencies |
| federal unemployment taxes | a federal tax used for state and federal administrative expenses of the unemployment program |
| state unemployment taxes | a state tax used to pay benefits to unemployed workers |
| payroll tax expense | the account where the employer’s payroll taxes are recorded |
| federal tax deposit coupon (form 8109) | form prepared and sent with payment of payroll taxes by small businesses. Also called the Federal Tax Deposit Coupon |
| electronic federal tax payment system (EFTPS) | electronic method of paying payroll taxes used by larger businesses |
| Form W-2 | Wage and Tax Statement used to summarize an employee’s earnings and withholding for the calendar year. Reports gross earnings, federal income tax withheld, FICA taxes withheld and state & local income taxes withheld |
| Form W-3 | Transmittal of Wage & Tax Statements filed by the employer with the federal government along with the Forms W-2 that summarizes the information on the W-2 forms |
| Form 941 | employer’s quarterly federal tax return that reports accumulated amounts of FICA and federal income taxes withheld from employees’ earnings, as well as FICA tax owed by the employer |
| Form 940 | form filed annually to report the employer’s federal unemployment tax to the federal government |
