Chap 2 Terms Flashcards
Biweekly Payroll
pay frequency in which employees are paid 26 times per year
Commission
employee compensation aid upon completion of a task, often pertaining to sales-based activities.
Daily Payroll
pay frequency in which employees are paid each business day.
Document Destruction
act of destroying documents that contain sensitive payroll and employee information.
Exempt
an employee who is not subject to the overtime provisions of the Fair Labor Standards Act
File Maintenance
the application of all transactions, including any necessary modification, to an employee’s file.
File Security
the procession of sensitive payroll information by restricting access and securely storing files.
Foreign Account Tax Compliance Act (FATCA)
Federal law that regulates the income tax withholdings of foreign employees.
Hiring Packet
a packet of forms that a firm issues to new employees; examples are Form W-4, Form I-9 and health insurance enrollment.
I-9
the Employment Eligibility Verification
Internal Control
a firm’s process of maintaining efficiency and effectiveness, work quality, accurate and reliable financial reports, and legal compliance.
Leased Employee
a person who provides services for a company subject to the provisions of IRS code section 414(n)
Monthly Payroll
pay frequency in which employees are paid 12 times per year.
New Hire Reporting
a process by which a firm notifies governmental authorities of any new hires shortly after the hire date.
Nonexempt
an employee who is subject to all overtime provisions of the Fair Labor Standards Act; generally, an hourly employee.