Ch 10 - Payroll Comps, Recs and Pay VOCAB Flashcards

1
Q

Define commission basis.

A

method of paying employees according to a percentage of net sales

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2
Q

Define compensation record (individual earnings record)

A

an employee record that contains information needed to compute earnings and complete tax reports

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3
Q

Define employee

A

person who is hired by and works under the control and direction of the employer

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4
Q

Define Employee’s Withholding Allowance Certificate (W-4)

A

a form used to claim withhoding/exemption allowances

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5
Q

Define exempt employees.

A

salaried employees who hold supervisory or managerial positions who are not subject to max hour and overtime pay provisions of the Wage and Hour Law

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6
Q

Define federal unemployment taxes.

A

taxes levied by federal government against employers to benefit unemployed workers

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7
Q

Define hourly rate basis

A

method of paying employees according to a stated rate per hour

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8
Q

Define independent contractor.

A

one who is paid by a company to carry out a specific task or job, but is not under the direct supervision or control of the company

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9
Q

Define Medicare tax.

A

a tax levied on employees and employers to provide medical care for the employee and the employee’s spouse after each has reached age 65

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10
Q

Define payroll register.

A

record of payroll information for each employee for the pay period.

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11
Q

Define Piece-rate basis.

A

method of paying employees according to the number of units produced

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12
Q

Define salary basis

A

method of paying employees according to an agreed-upon amount for each week or month

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13
Q

Define Social Security Act

A

federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act

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14
Q

Define social security (FICA) tax

A

tax imposed by Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability beneifts

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15
Q

Define state unemployment taxes.

A

taxes levied by a state govt against employers to benefit unemployed workers

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16
Q

Define tax-exempt wages

A

earning in excess of the base amount set by the Social Security Act

17
Q

Describe time and a half

A

rate of pay for an employee’s work in excess of 40 hours a week

18
Q

Define wage-bracket table method

A

simple method to determine the amount of federal income tax to be withheld using a table provided by the govt

19
Q

Define workers’ compensation insurance

A

insurance that protects employees against losses from job-related injuries or illnesses, or compensates their families if death occurs in the course of the employment