Ch 10 - Payroll Comps, Recs and Pay VOCAB Flashcards
Define commission basis.
method of paying employees according to a percentage of net sales
Define compensation record (individual earnings record)
an employee record that contains information needed to compute earnings and complete tax reports
Define employee
person who is hired by and works under the control and direction of the employer
Define Employee’s Withholding Allowance Certificate (W-4)
a form used to claim withhoding/exemption allowances
Define exempt employees.
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
Define federal unemployment taxes.
taxes levied by federal government against employers to benefit unemployed workers
Define hourly rate basis
method of paying employees according to a stated rate per hour
Define independent contractor.
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
Define Medicare tax.
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
Define payroll register.
record of payroll information for each employee for the pay period.
Define Piece-rate basis.
method of paying employees according to the number of units produced
Define salary basis
method of paying employees according to an agreed-upon amount for each week or month
Define Social Security Act
federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act
Define social security (FICA) tax
tax imposed by Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability beneifts
Define state unemployment taxes.
taxes levied by a state govt against employers to benefit unemployed workers
Define tax-exempt wages
earning in excess of the base amount set by the Social Security Act
Describe time and a half
rate of pay for an employee’s work in excess of 40 hours a week
Define wage-bracket table method
simple method to determine the amount of federal income tax to be withheld using a table provided by the govt
Define workers’ compensation insurance
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
