Chap 2 Terms Flashcards

1
Q

Biweekly Payroll

A

pay frequency in which employees are paid 26 times per year

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2
Q

Commission

A

employee compensation aid upon completion of a task, often pertaining to sales-based activities.

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3
Q

Daily Payroll

A

pay frequency in which employees are paid each business day.

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4
Q

Document Destruction

A

act of destroying documents that contain sensitive payroll and employee information.

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5
Q

Exempt

A

an employee who is not subject to the overtime provisions of the Fair Labor Standards Act

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6
Q

File Maintenance

A

the application of all transactions, including any necessary modification, to an employee’s file.

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7
Q

File Security

A

the procession of sensitive payroll information by restricting access and securely storing files.

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8
Q

Foreign Account Tax Compliance Act (FATCA)

A

Federal law that regulates the income tax withholdings of foreign employees.

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9
Q

Hiring Packet

A

a packet of forms that a firm issues to new employees; examples are Form W-4, Form I-9 and health insurance enrollment.

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10
Q

I-9

A

the Employment Eligibility Verification

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11
Q

Internal Control

A

a firm’s process of maintaining efficiency and effectiveness, work quality, accurate and reliable financial reports, and legal compliance.

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12
Q

Leased Employee

A

a person who provides services for a company subject to the provisions of IRS code section 414(n)

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13
Q

Monthly Payroll

A

pay frequency in which employees are paid 12 times per year.

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14
Q

New Hire Reporting

A

a process by which a firm notifies governmental authorities of any new hires shortly after the hire date.

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15
Q

Nonexempt

A

an employee who is subject to all overtime provisions of the Fair Labor Standards Act; generally, an hourly employee.

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16
Q

Outsourced Vendor

A

a party external to a firm that provides goods or services.

17
Q

Pay Period

A

the recurring period during which a firm collects employee labor data and pays employees in accordance with wage or salary agreements.

18
Q

Paycard

A

a debt card, issued to employees, that contains electronically transmitted wages

19
Q

Payroll Audit

A

an examination of a firm’s payroll records to determine legal compliance.

20
Q

Payroll Register

A

the payroll accountants internal tool that helps ensure accuracy of employee compensation.

21
Q

Payroll Review

A

verification of payroll accuracy for a period.

22
Q

Piece Rate

A

employee compensation based on the production of unit or completion of an action during a specified time period.

23
Q

Resignation

A

voluntary termination of employment

24
Q

Review Process

A

examination and analysis of accounting records to ensure accuracy and completeness.

25
Q

Semimonthly Payroll

A

payroll frequency in which employees are paid 24 times per year.

26
Q

Separation of Duties

A

an internal control method in which payroll duties are spread among two or more employees.

27
Q

Statutory Employee

A

a special class of employees who run their own business but must be treated as employees for tax reasons.

28
Q

Tax Table

A

a set of recalculated tables issued by federal and state governments to facilitate income tax computations for employee payroll.

29
Q

Temporary Employee

A

a worker who is employed by a temporary staffing agency and works under the direction of the agency on a temporary basis for different companies.

30
Q

Termination

A

ceasing employment with a firm.

31
Q

W-4

A

Employee Withholding Allowance Certificate

32
Q

Weekly Payroll

A

payroll frequency in which employees are paid 52 times per year.