• ABA/Trans code A nine-digit numeric code created by the American Bankers Association that identifies an employer's bank and routing for electronic transactions.
  • Account balance The sum of all contributions made to employer SUTA account minus benefit charges. Monies in the account are not refundable to the employer
  • Accrual The recognition of assets, expenses, liabilities or revenues after the cash value has been determined, but before it is transferred.
  • ACH (Automated Clearing House) Is a mechanism provided by the Federal Reserve Board's in which electronic fund transfers are facilitated by financial institutions replacing the need of physical checks.
  • Additional Claim Is a notice for restarting a claim for unemployment benefits within the benefit year given that the person has worked and earned more than the weekly benefits amount for 1 or 2 weeks or once filing ceases for employment. There must be documented separation.
  • Administrative Procedure Method by which support orders are made and enforced by an executive agency rather than by a court or judge.
  • Administrative Service Organization (ASO) Is the outsourcing of payroll with the taxes being filed by the provider under the client's tax identification number, a.k.a. Administrative Services Outsourcing
  • Advanced Earned Income Credit (AEIC) Payments of earned income credit during the year to employees who expect to be eligible for the credit. Employers make the payments out if federal income, Social Security and Medicare taxes withheld from the employees' wages.
  • Advice Number Indentifying number for bank purposes many times used on direct deposit vouchers.
  • Advice of Credit (AOC) A government form or coupon indiciating the amount of a federal tax deposit. It is to be used by employers when making payments.
  • AFDC (Aid to Families with Dependent Children) Assistance with payments made by state welfare agencies to qualifying families who are deprived of financial support by reason of dealth, diability or contiues absense of one the parents. a.k.a ADC (Aid to Dependent Children)
  • After-tax Deduction A deduction from an employee's pay that does not reduce the employee's taxable wages but is taken out only after all applicable taxes and other deductions have been withheld i.e. garnishments or charitable contributions.
  • Alien An individual living or visiting the United States but do not have the status of citizenship.
  • Alimony Payments made by one spouse to another, often during or after legal separation or divorce
  • Allowable Lien Limits Federal and state limitations on the amount of an employee's wages that can be attached for a lien
  • Alternate Base Year (ABY) Claimants unable to establish a valid claim using a regular base period may use an alternate base period of the last four completed quarters.
  • Amended Rate Once the employer has established an unemployment history, states calculate tax rates annually. An amended rate notice may be issued to reflect a change in any of the components used in calculating the original tax rate. Changes in the tax rate may occur due to voluntary contributions, transfers of experience, employer adjustments to amended quarterly tax filings, removal of benefit charges and/or receipt of a favorable determination resulting from a protest of the components as they appeared on the initial tax rate notice. Changes resulting from state legislation, approved after the issuance of the original tax rate, may also affect the tax rate.
  • Amendment A corrected tax return intended to replace a previously filed quarterly or annual tax return.
  • Arrearages Unpaid child support payments and related assessments owed by a parent who is obligated to pay.
  • Assignment of Support Rights When a person receiving public assistance agrees to turn over to the state any right to child support, including arrearages, paid by the obligated parent in exchange for receipt of an AFDC grant and other benefits.
  • Average Taxable Payroll The average of the taxable payrolls of an employer for a specified period immediately preceding the tax rate computation date.
  • ABA/Trans code A nine-digit numeric code created by the American Bankers Association that identifies an employer's bank and routing for electronic transactions.
  • Abate Term most often used when requesting an agency to reverse or cancel a penalty charge.
  • Account balance The sum of all contributions made to employer SUTA account minus benefit charges. Monies in the account are not refundable to the employer
  • Accrual The recognition of assets, expenses, liabilities or revenues after the cash value has been determined, but before it is transferred.
  • ACH (Automated Clearing House) Is a mechanism provided by the Federal Reserve Board's in which electronic fund transfers are facilitated by financial institutions replacing the need of physical checks.
  • Additional Claim Is a notice for restarting a claim for unemployment benefits within the benefit year given that the person has worked and earned more than the weekly benefits amount for 1 or 2 weeks or once filing ceases for employment. There must be documented separation.
  • Administrative Procedure Method by which support orders are made and enforced by an executive agency rather than by a court or judge.
  • Administrative Service Organization (ASO) Is the outsourcing of payroll with the taxes being filed by the provider under the client's tax identification number, a.k.a. Administrative Services Outsourcing
  • Advanced Earned Income Credit (AEIC) Payments of earned income credit during the year to employees who expect to be eligible for the credit. Employers make the payments out if federal income, Social Security and Medicare taxes withheld from the employees' wages.
  • Advice Number Indentifying number for bank purposes many times used on direct deposit vouchers.
  • Advice of Credit (AOC) A government form or coupon indiciating the amount of a federal tax deposit. It is to be used by employers when making payments.
  • AFDC (Aid to Families with Dependent Children) Assistance with payments made by state welfare agencies to qualifying families who are deprived of financial support by reason of dealth, diability or contiues absense of one the parents. a.k.a ADC (Aid to Dependent Children)
  • After-tax Deduction A deduction from an employee's pay that does not reduce the employee's taxable wages but is taken out only after all applicable taxes and other deductions have been withheld i.e. garnishments or charitable contributions.
  • Alien An individual living or visiting the United States but do not have the status of citizenship.
  • Alimony Payments made by one spouse to another, often during or after legal separation or divorce
  • Allowable Lien Limits Federal and state limitations on the amount of an employee's wages that can be attached for a lien
  • Alternate Base Year (ABY) Claimants unable to establish a valid claim using a regular base period may use an alternate base period of the last four completed quarters.
  • Amended Rate Once the employer has established an unemployment history, states calculate tax rates annually. An amended rate notice may be issued to reflect a change in any of the components used in calculating the original tax rate. Changes in the tax rate may occur due to voluntary contributions, transfers of experience, employer adjustments to amended quarterly tax filings, removal of benefit charges and/or receipt of a favorable determination resulting from a protest of the components as they appeared on the initial tax rate notice. Changes resulting from state legislation, approved after the issuance of the original tax rate, may also affect the tax rate.
  • Amendment A corrected tax return intended to replace a previously filed quarterly or annual tax return.
  • Arrearages Unpaid child support payments and related assessments owed by a parent who is obligated to pay.
  • Assignment of Support Rights When a person receiving public assistance agrees to turn over to the state any right to child support, including arrearages, paid by the obligated parent in exchange for receipt of an AFDC grant and other benefits.
  • Average Taxable Payroll The average of the taxable payrolls of an employer for a specified period immediately preceding the tax rate computation date.
  • Backup Withholding Usually Federal Income Tax (FIT) withheld from interest payments to a customer's bank account when no Social Security Number is on file. Financial institutions are required to deposit and report this withholding with their federal payroll taxes on Form 945. Banks, savings and loans, and similar types of institutions are required by law to withhold 31% of taxable interest or dividends paid on accounts that have failed to furnish correct taxpayer identification numbers (Social Security numbers).
  • Bank Release Date The day the payroll tax debit is sent to the bank.
  • Bankruptcy The attachment of all or a portion of an employee's wages to satisfy outstanding debts. Usually, this lien type has the highest priority.When you receive a bankruptcy order, you must inactivate all other liens(except, in most cases, support orders). Currently, all bankruptcies are issued by a federal court
  • Base Period Utilized in the calculation for unemployment benefits, this is the period usually consisting of the first four of the last five completed calendar quarters immediately preceding the beginning of a claimant's benefit year. In some states, the base period consists of the 52 weeks prior to the benefit year. The base period is used to determine a claimant's monetary eligibility and benefit entitlement, as well as the employers' liability.
  • Base Period (Employer) The period for measuring a qualified employer's past experience with unemployment; the four fiscal years preceding the computation date (July 1 of each year). For claimants, the base period is the base year.
  • Benefit Accrual Hours that are considered an employee benefit, such as paid vacation or paid sick hours, are sometimes accumulated (accrued) by the employee over a period of time.
  • Benefit Charging Unemployment Compensation Benefit amounts paid to an individual. The benefit amount is based on the amount of wages the employer paid the employee during the base period. The base period is a four-quarter period, most commonly the first four of the last five completed calendar quarters, used by the state to determine benefit eligibility. The states also use the base period to pinpoint an individual's chargeable employers. How much each employer will be charged is based on one of several charging methods. (Also see: Benefit Wage, Employer with Majority of Wages, Inverse Chronological Order, Most Recent Employer, & Prorating).
  • Benefit Eligibility Conditions
    Statutory requirements which must be satisfied by an individual with respect to each week of unemployment for which compensation or allowance payments are claimed before payment for the week is made. The most basic requirement in order to receive benefits is that the claimant must be out of work through no fault of their own.
  • Benefit Formula
    A mathematical formula specified in State unemployment compensation law or Federal laws used as the basis for determining an individual's weekly benefit amount and potential maximum benefit entitlement.
  • Benefit Ratio (BR)
    A calculated formula used by some states to compute the Unemployment Insurance Experience Tax Rate. The Benefit Ratio is computed by dividing the taxable wages for the previous three to five year period by the benefits charged for the same period. In most states, this ratio is then compared to the state-rating table to determine the employer tax rate.
  • Benefit Ratio Formula
    3 or more years Benefit Charges (divided by) Taxable Payroll for the same period = BENEFIT RATIO
  • Benefit Wage
    Delaware and Oklahoma use this benefit charging method. Each base period employer is charged an amount equal to the amount of wages it paid the individual during the base period, up to a set liability amount. Charging is triggered when the individual has collected a specified number of weeks of benefits.

    To help offset the increased liability, the states using the benefit wage charging method provide rehire credits to any employer that rehires a former employee during his benefit year (the year following the initial filing of an unemployment claim). To receive a rehire credit against benefit wages charged to its account an employer must send a request letter to the state.

    Delaware employers must submit their request within 90 days from the end of the individual's benefit year.

    Oklahoma employers must request the credit within 30 days following the end of the individual's benefit year or the receipt of a charge statement whichever is later. The credit is then applied to future rate computations. (Also see: Benefit Wage Ratio)
  • Benefit Wage Formula
    3 years Benefit Wages (divided by) 3 years Taxable Payroll = BENEFIT WAGE RATIO (Also see: Benefit Wage Ratio)
  • Benefit Wage Ratio (BWR)
    A calculated formula used by the state to compute the Unemployment Insurance Experience Tax Rate. The Benefit Wage Ratio is computed by dividing the benefit wages for the previous three to five year period by the benefits charged for the same period. This ratio is then compared to the state rating table to determine the employer tax rate. This formula is currently used in Delaware and Oklahoma.
  • Benefits
    The monetary amount paid to an employee also to an unemployed or partially unemployed worker.
  • Biweekly
    Once every two weeks; type of payroll period that can be used in the percentage of wage-bracket method of withholding. There are 26 pay periods on a biweekly pay chedule.
  • Bonus
    Compensation received by an employee for services performed. A bonus is given in addition to an employee's usual compensation.
  • Business Tax Credit for Employer-paid FICA on Tips
    This tax credit is available to employers at food and beverage establishments --- not to other types of tipped employment. Also, it applies only with respect to tips not already used to support a tip credit for minimum wage rate purposes. The credit is against the business income tax of the employer and is claimed by filing IRS Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.
  • Business Process Outsourcing
    This is commonly referred to when speaking about the PEO industry. This is a number of different outsourcing processing from which PEO Edge specializes in.
  • Cafeteria Plan
    A cafeteria plan is a "menu" of flexible benefits offered under the Internal Revenue Code Section 125. Employees can take advantage of these benefits on a pretax basis from wages. Benefits usually offered under a cafeteria plan include accident and health insurance, group legal services, group term life insurance, dependent care assistance, and additional vacation days.
  • Calendar Quarter
    The four quarters of the year as follows: January to March, April to June, July to Septemper, and October to December.
  • Charge Statement
    Statement of Unemployment Benefit Charge payments made to former employees. Issuance of benefit charge statements is weekly, monthly, quarterly or annually depending on the state regulations.
  • Child Support Withholding
    The process of withholding amounts from an employee's compensation to satisfy a child support order from a court or state child welfare administrative agency. The employer is responsible for withholding the amounts and paying them over to the party named in the withholding order.
  • Choice of Financing (Reimbursing Analysis)
    This analysis compares taxes paid, benefits charged and taxable wages during a one to three year period to determine the most beneficial unemployment funding option (experience rated or reimbursing). The reimbursing option is only available to not-for-profit entities.
  • Circular 'E'
    Federal employer's tax guide. Changes each year and states current federal tax and deposit rules as well as rates.
  • City or Local Income Tax
    A withholding tax deducted from an employee's wages as required by a city or local jurisdiction. The amount of withholding varies with the amount of earnings, frequency of pay, number of claimed exemptions, and marital status.
  • Claimant
    A totally or partially unemployed individual who has filed a claim for unemployment benefits. Commonly used term by the State Unemployment Agency for the person who has filed a claim for unemployment compensation benefits.
  • Claimant Fraud
    The willful misrepresentation or nondisclosure of a material fact by a claimant for the purpose of obtaining benefits to which the individual is not entitled.
  • COBRA
    Consolidated Omnibus Budget Reconciliation Act of 1985. This Act requires that continuation of group insurance coverage be offered to covered persons who lose health or dental coverage due to a qualifying event as defined in the Act. For more information visit http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html.
  • COD
    Court ordered deduction; any legal notice received ordering an employer to deduct monies from an employees paycheck to be paid directly to the court or another agency (child support payment, garnishments, etc.) also Cash On Delivery
  • Collection Agency
    A third party responsible for collecting overdue debts.
  • Combined Filing
    A filing which includes the liability and deposits for more than one tax type. For example, California requires combined State Income Tax (SIT), State Unemployment Insurance (SUI) and State Disability Insurance (SDI) deposits and filings. New York requires combined State Income Tax (SIT) and City Income Tax (CIT) deposits and filings.
  • Combined Wage Claim
    A claim filed in one State against wage credits earned in two or more States.
  • Common Ownership
    When blood or marriage relates the owners, partners, officers, shareholders or previous owners of two or more organizations.
  • Common Pay Agent
    Refers to the Internal Revenue Service (IRS) rules that allow employers with multiple Federal Employer Identification Numbers (FEINs) to consolidate tax returns and tax payments under one FEIN. The purpose of the Common Pay Agent program is to simplify employer tax reporting through the consolidation of filings (i.e., Form 941).
  • Common Paymaster
    Refers to the Internal Revenue Service (IRS) rules that allow related corporations that employ the same individual to be considered a single employer for the purposes of calculating Social Security and Federal Unemployment Tax.
  • Compliance
    Referring to compliance with any federal, state or local laws regarding taxes and dealings with employees.
  • Computation Date
    The date as of which employer's experience is measured for the purpose of determining contribution rates.
  • Consent Agreement
    Voluntary written admission of paternity or responsibility for support.
  • Consolidated Omnibus Budget Reconciliation Act
    A law requiring organizations with 20 or more employees to offer continuation of group health benefits to certain former employees, retirees, spouses, and dependent children. The length of continuation coverage offered depends on the "qualifying event." (certain types of events that would cause, except for COBRA continuation coverage, an individual to lose health coverage). The type of qualifying event will determine who is entitled for continuation coverage and the required amount of time that the plan must offer the health coverage under COBRA. For example, in the event a covered employee voluntarily or involuntarily terminates employment for reason other than "gross misconduct" or reduces the number of hours worked (with loss of coverage), the covered employee, spouse, and dependent children will be entitled to continue coverage in the group health plan for up to 18 months. A covered spouse and dependent child(ren) are eligible to continue coverage for up to 36 months in the event of divorce, legal separation, or death of the covered employee, or the child(ren) no longer meets the requirements of a dependent child under the health plan
  • Constructive Receipt
    The Internal Revenue Service (IRS) doctrine stating that wages generally are taxable and subject to employment tax withholding (e.g., Social Security, Medicare, Federal Income Tax, and Federal Unemployment Tax) when actually paid or when made available to employees without substantial limitation.
  • Continued Claim
    A claim filed by mail or in person for waiting period credit or payment for one or more weeks of unemployment.
  • Contribution - Employee
    In most states the employer contribution finances 100% of the Unemployment Insurance Fund. In a limited number of states, the employee is also liable for contributions through payroll withholding. Failure to withhold employee contributions as directed will result in employer liability for all monies not withheld. Employers withholding for employee contributions in non-contribution states may be subject to fines and criminal prosecution.
  • Contribution - Employer
    Payments to the state unemployment fund as taxes, including voluntary contributions and special assessments paid by subject employers. The contribution amount is determined by multiplying the employer taxable payroll by the assigned unemployment tax rate.
  • Contribution Report
    An employer report of total wages and taxable wages including a calculation of the contribution amount due to the state unemployment fund. The majority of states require quarterly report filing. An employer's quarterly report of total and taxable wages, the amount of contribution due a State unemployment fund.
  • Court-Ordered Support
    A mandatory support order, often paid to the court or a child support enforcement agency, that is identified by phrasing such as "order served"or "notice of order."
  • Covered Employer
    An employer that is subject to the provisions of the Employment Security Law. An employer achieves liability based on one or more of the following conditions: employing a minimum specified number of workers and/or duration of employment; the nature of the employment; the amount of wages paid for services in employment; the acquisition of a business; or voluntary election of coverage for non-mandated employers.
  • Covered Employment
    Generally, any person performing services for a company is an employee if the company can control what, when and how the job functions are to be done. Federal law defines these individuals as "common law" employees. If an employer-employee relationship exists, it does not matter what terminology the employer uses to describe the employees. Employees can include managers, supervisors and corporate officers. (Directors of a corporation, as well as officers of a corporation that perform no services or that are paid no wages, are usually not considered employees.) An employer must report and pay contributions on the wages of all of its employees. Employers should consult the laws of the states in which business is conducted to determine if employees' wages should be reported. States will at times have differing regulations than the FUTA guidelines.
  • Covered Wages
    Under FUTA, wages include all cash payments made to employees for services rendered, including salaries, commissions, vacation allowances, fees, bonuses, back pay and many fringe benefits. It does not matter in what form the payment is made, when it is made, or on what measurement of production it is based. Wages also include the cash value of remuneration paid other than cash, such as the reasonable value of food or lodging allowed to an employee as part of the employment relationship. Certain payments and benefits are considered exempt under FUTA, as an example, cafeteria plan contributions are only exempt in about half the states. Necessary business expenses incurred in connection with employment and reimbursed or advanced to employees (such as per diem allowances and traveling or moving expenses) are usually not considered taxable wages. For business expenses to be exempt from wages the employer must identify those payments on separate detailed records. If properly documented most states will consider such payments exempt, even if not specifically exempted by law or regulations.
  • Custodial Parent
    Person with legal custody and with whom the child lives; may be a parent,relative, or other individual.
  • Custody
    The legal determination which establishes with whom a child shall live.
  • DBA (Doing Business As)
    This is the name the public sees as opposed to the legal or statutory name
  • De Minimis Fringe Benefit
    Any employer provided property or service having a value so small that accounting for it would be unreasonable or administratively impracticable, may be excluded from income as a "de minimis" fringe benefit.
  • Debit Elect
    If taxes have been under-deposited in a quarter, the taxpayer can choose to pay the balance due in the next quarter if the taxing agency does not require a quarterly return.
  • Debit Filter
    Automatically returns all ACH items for a designated Client account, except those that are pre-authorized. Authorized ACH Originators are identified by providing the bank with a specific Company Identifier (debit filter number).
  • Decision
    Written opinion of a Hearing Officer or panel of Judges, based upon testimony and documentation taken at a hearing, that determines if a former employee (claimant) is eligible to receive unemployment compensation benefits or if an employer is liable to pay benefits.
  • Deductions
    An amount that is or may be subtracted from an employee's paycheck. They can be taken pre-tax or after tax depending on the type of deduction. The employee must agree to have deductions withheld from their paycheck.
  • Default
    Failure of a defendant to file an answer, response, or appeal in a civil case within a certain number of days after having been served with a summons and complaint.
  • Default Judgment
    Decision made by the court when a defendant fails to respond to a summons and complaint.
  • Defendant
    Person against whom a civil or criminal proceeding has been initiated.
  • Deferred Compensation Plan
    Deferred compensation plans are employee benefit plans, authorized by various Internal Revenue Code Sections, under which employees may contribute a percentage of wages to tax deferred savings plans rather than receive the amounts as current compensation. The most commonly used deferred compensation plan is the 401(k) plan (so named for its IRC section).

    Employee contributions to 401(k) plans are exempt from federal income tax and, in some states, state income tax, withholding but are not exempt from FICA withholding. Employer contributions, made on behalf of the employee, are also exempt from federal income tax withholding. Contributions and earnings thereon accumulate tax free until distributed to the employee at retirement.

    The maximum amount that an employee can elect to defer for 2000 under a 401(k) plan in which the employee participates is $10,500. The limit is adjusted annually for inflation. The amount that an employee may actually defer, however, is usually lower as typical plan terms limit contributions to the lower of a specified percentage of current wages or the statutory maximum.

    No special permission is required from the IRS to implement a 401(k) plan but the regulations surrounding these types of plans are so voluminous and complicated that a qualification ruling is usually sought.

    Deferred compensation plans have strict requirements as to eligibility, participation, vesting, nondiscrimination, withdrawal of funds, and annual reporting and legal advice should be sought in their institution.
  • Delinquent Account
    An employer's account is considered delinquent if any of the quarterly contribution and wage reports and/or unemployment taxes have not been submitted to the state agency by the prescribed due date.
  • Dependent
    A person who is claimed as a dependent must:
    • be a child of the employee who is either under 19 or a full-time student under 24, or
    • be a child of the employee who is a full-time student over 24 who is reasonably expected to receive less than $3,000 of income during the taxable year, or
    • be reasonably expected to receive less than $3,000 of income during the taxable year, or
    • be permanently and totally disabled and receive income for services performed at a sheltered workshop operated by a charity or government
    • receive more than half his support from the employee;
    • be a citizen, national, or resident of the United States, or a resident of Canada or Mexico, or an alien child adopted by and living with a United States citizen abroad;
    • and be either:
      • a child, grandchild, stepchild, parent, grandparent, stepparent, brother, sister, stepbrother, stepsister, in law, aunt, uncle, nephew, or niece of the employee, or
      • a member of the employee's household for the taxable year and have the employee's home as his principal place of abode; and not file a joint return.
  • Dependents' Allowance
    Special allowances provided under some State unemployment compensation laws to beneficiaries with family support responsibilities as defined under the statutory provisions of the laws.
  • Determination
    An official decision by the Employment Security Department regarding the unemployment claim of an individual or the tax status of an employer.
  • Direct Debit of Fees
    The charging of payroll fees through an ACH transaction.
  • Disability Insurance (DI)
    A monetary compensation plan provided by the government and/or an employer to support employees who are disabled due to illness or injury.
  • Direct Deposit
    The electronic transfer of an employee's net pay directly into financial institution accounts designated by the employee, thus avoiding the need to receive a "live" paycheck.
  • Direct Send
    A direct daily transmission established at a bank to accelerate the posting of debit and credits and to obtain improved information on returned items.
  • Divestiture
    When an employer sells all or part of its business to an unrelated entity.
  • Duration of Benefits
    The number of weeks of benefits a claimant may receive. May be expressed in total dollars available.
  • Earned Income Credit (EIC)
    A special federal program that allows low-income employees to be reimbursed by their employers for a portion of their Federal Income Tax (FIT) withholdings. Employer can then claim those reimbursements as credits on Form 941 (Quarterly Federal Return).
  • Earnings Allowance
    The amount prescribed by State unemployment compensation laws that a claimant may earn without any reduction in the weekly benefit amount for a week of total unemployment.
  • ELECTRONIC FEDERAL TAX PAYMENT SYSTEM
    Electronic Federal Tax Payment System (EFTPS) An electronic system for reporting and paying federal taxes. Typically refers to an Internal Revenue Service (IRS) regulation requiring that taxpayers within a specific threshold for federal employment tax deposits make all of their business tax payments electronically. For more information visit this www.eftps.gov
  • Electronic Funds Transfer (EFT)
    Some states and federal agencies require employers to pay unemployment taxes by electronic funds transfer. There are several regulations for electronic funds transfer.
  • Eligibility Determination
    A determination as to whether a claimant meets all of the eligibility conditions prescribed by law.
  • Employee
    An individual performing services for an employing unit, as defined by state law, under a master/servant or employer/employee relationship.
  • Employee Contributions
    The unemployment compensation taxes required by a very few State unemployment compensation laws to be deducted by the employer from an employee's pay and paid with the employer's contribution to the State agency.
  • Employee Leasing Company (PEO)
    A company that leases employees, to another business, on a contract basis. They handle all personnel matters and are generally considered the employer of the leased employees.
  • Employer
    An employing unit, as defined, subject under State or Federal unemployment compensation laws.
  • Employer Tax Identification Number (EIN)
    A 9-digit state identification number, e.g., 12-3456789, assigned to each employer by the Internal Revenue Service (IRS). This number must be used on all documentation submitted to the agency. In some states, the EIN is the same as the Federal Employer Identification Number (FEIN).
  • Employer with Majority of Wages
    An unemployment insurance charging method, in which the employer that paid the largest amount of wages during the base period is charged for all benefits paid.
  • Employer-Allowed Fee
    An administrative fee collected by an employer from an employee for processing a lien. The legality, amount, and collection frequency vary by state
  • Enforcement
    The act of obtaining payment of a child support or medical support obligation.
  • ERISA
    The main purpose of the Employee Retirement Income Security Act (ERISA) is to ensure that employees receive the pension and other benefits promised by their employers. ERISA also incorporates and is tied to provisions of the Internal Revenue Code (IRC) that were enacted to encourage employers to provide retirement benefits to their employees.
  • EVS
    Employee Verification Service (EVS). The service will match your record of employee names and Social Security numbers (SSN) with SSAs records before you prepare and submit Forms W-2 (Wage and Tax Statements). Making sure names and SSNs entered on the W-2 match the Social Security Administrations records is important because unmatched records can result in additional processing costs for you and uncredited earnings for your employees. Uncredited earnings can affect future eligibility to (and amounts paid under) SSAs retirement, disability and survivors program. EVS can help eliminate this common reporting error. For more information click here.
  • Excludable Deductions
    Scheduled deductions that are subtracted from an employee's gross pay before a lien deduction is calculated. Deductions that should be excluded vary by tax jurisdiction and lien type and must be indicated on the lien notification
  • Excludable Earnings
    Earnings that are subtracted from an employee's gross pay before a lien deduction is calculated.
  • Exempt from Withholding
    An employee who claims free from withholding from Federal, state or local taxes. A person must meet certain income, tax liability, and dependency criteria. This does not exempt a person from other kinds of tax withholding, such as the Social Security tax.
  • Exempt Status Employee
    Employees with "exempt" status are exempt from the protections of the wage and hour laws of their state, or of the Federal government (Fair Labor Standards Act). Examples of "exempt" employees under Federal law are "executives," "professionals" and full-time students, as defined under the Fair Labor Standards Act. "Exempt" employees must always be paid on a salary basis, not subject to reduction based on the quality or quantity of work performed.
  • Experience
    A record of an employer's state unemployment insurance (SUI) account detailing charges, taxable wages and/or quarterly and other contributions. Experience is used to calculate the employer SUI tax rate.
  • Experience Rate
    The state unemployment insurance tax rate that is based on the amount of unemployment benefits paid out as a percent of total wages. The experience rate has been calculated to ensure that an employer has sufficient funds to cover future unemployment disbursements.
  • Experience Rating
    The calculation of an employer SUI tax rate, based on its ability to maintain a stable work force through a positive payroll history and minimizing benefit charges against its account. SIC codes are often utilized as a factor in the determination of an employer experience rate. (Also see: SUI,SIC)
  • Experience Rating Record
    The account maintained by the Agency on each employer and containing all the elements for the computation of the employer's tax rate.
  • Experience Tax Rate
    A method for determining the contribution rates of individual employers according to the factors specified in the State unemployment compensation code for measuring an employer's experience with respect to unemployment. After an employer has met the state's merit rating requirements an experience rate is assigned. Depending on the State, an employers eligibility for experience rating is based on the number of years it has been chargeable for unemployment benefits and/or liable for unemployment taxes. Most states will wait to assign the experience rate until the beginning of the next rate year; however, a few will assign a new rate as soon as the employer is eligible.
  • Extended Benefits (EB)
    The supplemental program that pays extended compensation during periods of specified high unemployment to individuals for weeks of unemployment after (1) they draw the maximum potential entitlement to regular compensation within their benefit year or (2) after their benefit year ends while they are in continued unemployment status and have insufficient wage credits to establish a new claim provided, however, that the extended benefit period in the State began prior to the end of their benefit year. Extended benefits paid to claimants under State unemployment compensation law are jointly financed on a 50-50 basis by State and Federal funds; extended benefits paid to UCFE are totally financed by Federal funds.
  • Extended Unemployment Compensation Account (EUCA)
    An account in the Unemployment Trust Fund from which the Federal portion of shareable extended benefits and Emergency Compensation authorized by the Congress are paid to State agencies.
  • Fair Labor Standards Act (FLSA)
    The Fair Labor Standards Act (1938) regulates minimum wage, overtime pay, and child labor laws for employers and employees covered by law.
  • Family Medical Leave Act (FMLA)
    The Family and Medical Leave Act (FMLA) requires that all covered employers provide their eligible employees with 12 weeks of unpaid leave during any 12-month period for one or more of the following reasons: the birth of a child, placement with the employee of an adopted child, to take care of an immediate family member with a serious health condition, or for leave when the employee has a serious medical condition. This generically refers to both Federal and State laws.
  • Federal Employer Identification Number (FEIN)
    The identification number assigned to employers by the Internal Revenue Service to control reporting and accounting functions. Some states will use the FEIN as the core for employer account numbers, but they are not interchangeable.
  • Federal Income Tax (FIT)
    A withholding tax levied against employees. The amount of withholding varies with the amount of earnings, frequency of pay, number of claimed exemptions, and marital status.
  • Federal Information Processing Standard (FIPS) Code
    The code on a child support order that identifies the support agency receiving the payment.
  • Federal Insurance Contribution Act (FICA)
    FICA is a tax consisting of Social Security and Medicare taxes levied against employers and employees. Employers must match employee Social Security and Medicare tax contributions, using the same rate and taxable wage amounts.
  • Federal Parent Locator Service (FPLS)
    FPLS obtains employer and home address information from federal agencies. The service is operated by the Office of Child Support Enforcement in the U.S. Department of Health and Human Services and assists the states in locating persons responsible for making child support payments. It is also used in cases of parental kidnapping related to custody and visitation disputes.
  • Federal Reserve Bank (FRB)
    An independent agency of the U.S. government that plays a central role in monetary policy, the regulation of domestic payment systems (such as Fedwire and ACH), and the regulation of financial institutions. The FRB also acts as the fiscal agent for the U.S. Treasury.
  • Federal Supplemental Benefits (FSB)
    A temporary Federal program totally financed by Federal funds that pays supplemental compensation during specified periods of high unemployment to individuals who have exhausted their regular compensation, State-financed additional benefits, and/or the jointly financed Federal/State extended benefits.
  • Federal Tax Deposit (FTD)
    The Federal Tax Deposit consists of Federal Income Tax and Social Security/Medicare.
  • Federal Unemployment Account (FUA)
    An account in the Unemployment Trust Fund from which repayable advances are available to States whose unemployment fund reserves are temporarily unable to meet current benefit payments.
  • Federal Unemployment Tax Act (FUTA)
    Federal law first enacted in 1939, which sets guidelines for the administration of unemployment compensation programs. All liable employers pay a federal tax to fund administration of State and Federal unemployment insurance programs. These monies are also used to fund extended benefits. States must adhere to the minimum FUTA guidelines in terms of taxation and benefit administration but may set higher standards.
  • Federally-Assisted Foster Care
    A program funded in part by the federal government that enables a child to be raised in a household by someone other than his or her own parent.
  • Fedwire
    An electronic payment system that allows businesses to deposit tax payments using a same-day payment method. Fedwire is currently restricted to taxpayers who are mandated to use the Electronic Federal Tax Payment System (EFTPS). The process must be initiated by a financial institution.
  • FIPS Code
    The Federal Information Processing Standard code used to identify the child support enforcement agency that issued an order. Not all support orders specify a FIPS code.
  • Fiscal Year
    Typically July 1 through June 30 generally, the federal government and some states use October 1 through September 30.
  • Flexible Spending Account (FSA)
    A plan in which your employer reduces your earnings to pay for your enhanced medical insurance coverage or child care. Under this plan, you receive medical insurance and child care tax free.
  • Fraudulent Claim
    A claim where the claimant has fraudulently claimed benefits by furnishing false information, or has withheld pertinent information deliberately, for the purpose of receiving benefits.
  • Fringe Benefit
    Compensation other than wages provided to an employee such as health and life insurance, vacation, employer-provided vehicles, public transportation subsidies, etc., that may be taxable or non-taxable.
  • Frozen Wage Credits
    Under certain circumstances, state law allows for the creation of special benefit year for individuals who were injured, allowing use of a base year prior to the injury. This effectively ìfreezesî those wage credits. Such benefits are not charged to base year employers.
  • Fund Balance Ratio
    The computation each June 30 of the balance in the UI Trust Fund divided by total wages in the preceding calendar year. This calculation determines the tax schedule for the following year; the higher the fund balance ratio, the lower the average tax
  • FUTA Tax Return (Form 940)
    Annual federal unemployment tax return filed during January of each year. The report calculates the total federal unemployment tax for the completed calendar year. The return details each SUI account number, corresponding taxable wages, tax rate and contributions made.
  • Garnishee
    In a payroll context, an employer that receives an order requiring withholding from an employee's wages to satisfy a debt.
  • Garnishment
    Garnishment another term for lien.
  • Goal Limit
    The total amount due to satisfy a lien. When this limit is reached, the deduction stops. Federal bankruptcy, garnishments, and tax levies often have a fixed amount to be paid; support orders usually do not unless theyare a separate order for arrears
  • Gross Wages
    Total remuneration paid an employee before taxes and deductions.
  • Group Term Life (GTL)
    Employer- provided life insurance coverage. The premium for coverage in excess of $50,000 is taxable and must be reported as additional income on an employee's Form W-2.
  • Guidelines
    A standard method for establishing child support obligations based on the income of the parent(s) and other factors, as determined by state law.
  • Hearing
    An administrative procedure, by the appeals section of a state unemployment agency, to accept testimony and documents relating to the separation of a former employee (claimant) from their work.
  • Higher Authority Appeal
    The higher of two administrative authorities provided by State unemployment compensation laws to make decisions with respect to appeals.
  • Highly Compensated Employee (HCE)
    In the context of certain fringe benefit plans, an employee who is an owner or officer of a business or whose salary exceeds a certain amount (indexed each year for inflation). Many benefits offered by employers do not qualify for favorable tax treatment if they discriminate in favor of highly compensated employees. And employers may also be restricted in their use of safe-harbor valuations of benefits provided to such employees.
  • High-Quarter Formula
    A benefit formula which uses an individual's highest quarter of wages in the base period to compute the weekly benefit amount.
  • HIPAA
    HIPAA: The Health Insurance Portability & Accountability Act of 1996 (August 21), Public Law 104-191, which amends the Internal Revenue Service Code of 1986. Also known as the Kennedy-Kassebaum Act.
  • I9
    Immigration and Naturalization Employment Eligibility verification form
  • ID #
    Tax Identification Number. See Employer Tax Identification Number (EIN).
  • Immediate Wage Withholding
    Automatic deductions from an employee's wages that start as soon as an agreement for child support is established.
  • Immigration and Naturalization Service (INS)
    Federal agency charged with enforcement of United States Immigration laws.
  • Immigration Reform and Control Act of 1986 (IRCA)
    Law enacted in 1986 that prohibits employers from hiring persons who are not authorized to work in the US and from discriminating against those who are because of national origin or citizenship.
  • Impound
    The process of withdrawing funds from a client's account and placing them into the PEO custodial account.
  • Imputed Income
    The addition of the value of cash/non-cash compensation to an employees' taxable wages in order to properly withhold income and employment taxes from the wages.
  • Independent Contractor
    An individual, who is self-employed, and is free from the direction and control of an employer covered under state and federal unemployment laws. The Internal Revenue Service uses certain guidelines to determine the independent contractor relationship. Many states utilize the same guidelines. Upon termination of the independent contractor's services, the individual may attempt to collect unemployment benefits. The company should be prepared to prove to the state that the contracted individual was not an employee within the meaning of the law.
  • Individual Retirement Account (IRA)
    A tax-deferred retirement account that can be established by any employed person.
  • Interim
    Referring to periodic filings and deposits made during a quarter as required by some federal, state, or city agencies.
  • Interstate Combined-Wage Claim
    A combined-wage claim in which the paying State is not the State in which the claim is filed and the interstate claims procedures are used in making the payment.
  • Inverse Chronological Order
    This benefit charging method combines the prorating and most recent employer methods. Each base period employer's liability is calculated using the prorating method, rather than charging all employers simultaneously. States using the inverse chronological method charge the most recent employer until its liability has been exhausted. The next most recent employer is then charged, and so on.
  • Invoice
    A document that notifies a client of charges and credits to their bank account.
  • Involuntary Deductions
    Deductions over which the employers and employees have no control.
  • IRA
    See Individual Retirement Account.
  • IRS
    Internal Revenue Service.
  • Joint Account (Common Rate Group)
    Two or more separate entities in the same industry can share a common unemployment insurance tax rate. When employers form a joint account the primary goal is to achieve a lower overall tax rate for the members. A limited number of states allow joint accounts for tax rated employers while the majority of states allow joint accounts for reimbursing employers. In some instances the tax rate of one member may increase but the combined experience of all members will most often result in a group tax savings. Before a joint account can be established an application must be approved by the state agency. Each state has specific regulations for joint accounts that can include the minimum duration for a joint account and under which circumstances a member may sever the joint account agreement. A complete benefit analysis should be performed prior to entering a joint account agreement.
  • Joint Account Analysis (Common Rating Evaluation)
    Certain states allow employers to combine the components of two or more unemployment insurance experience rated accounts to arrive at a joint account tax rate. This analysis summarizes the recommended grouping(s) and details estimated savings opportunities. In addition, if a grouping exists for the prior year, the effect of continuing this grouping and any restrictions that may be imposed by the state agency will be identified. Instruction for the implementation of recommended grouping(s) is provided.
  • Jurisdiction
    The legal authority which a court has over particular persons and certain types of cases in a defined geographical area.
  • Jurisdiction Legal Name (JLN)
    The SIT/SUI legal name, or name that a state agency has on record, for a company that is different from a federal name. It is used for state deposits and filings.
  • Key Person Insurance
    This is a tax-free life insurance policy that covers expenses in hiring and training of a key employee in the case of the key employee's demise.
  • Lag Quarter(s)
    The quarter(s) between the end of a base period and the quarter which includes the beginning date of the benefit year.
  • Leased Employment
    See Employee Leasing
  • Leave of Absence (LOA)
    Official permission to be excused from work or duty.
  • Legal Father
    A man who is recognized by law as the male parent.
  • Legal Mother
    A woman who is recognized by law as the female parent.
  • Levy
    See also Tax Levy
  • Liability Date
    The date an employer must begin reporting wages and paying taxes for unemployment insurance purposes. An employer should be clear as to the regulation of the states business is conducted in.
  • Liable State
    Any State against which a worker files a claim for compensation through the facilities of another (agent) State.
  • Lien Basis
    The amount of an employee's pay that is subject to wage garnishment.The lien basis varies by lien type and jurisdiction. Often it is disposable income that is, gross pay minus taxes and other earnings or deductions required by law.
  • Lien Notification
    A court order or other document that specifies the terms of an employee lien (e.g., payee name, amount due, start date). This notification is yoursource document when setting up a lien and entering payee information and excludables.
  • Lien/Levy
    An agency's legal action against the bank account or personal property of an individual or business in order to collect unpaid taxes. It is also a claim upon property to prevent sale or transfer until a debt is satisfied.
  • Limited Power of Attorney (LPOA)
    See Power of Attorney.
  • Lived In
    The city in which an employee resides.
  • LOA
    See Leave of Absence.
  • Local Income Tax
    A withholding tax deducted from an employee's wages as required by a city or local jurisdiction. The amount of withholding varies with the amount of earnings, frequency of pay, number of claimed exemptions, and marital status.
  • Local Tax Rate
    Percentage of withholding for a locality.
  • Local Withholding Rate
    Total percentage of withholding for a taxing locality.
  • Location/Department Experience Rating
    This analysis calculates an experience tax rate based upon the payroll(s) reported and specific benefit charges for each location/department. This analysis is used by management in allocating expenses associated with unemployment costs to the appropriate location or department.
  • Long Arm Statute
    A law permitting one state to claim jurisdiction over an individual living in another state.
  • Long Term Disability (LTD)
    An employee benefit that pays partial or total medical wages to an employee on extended medical leave. See also 3PSP.
  • Lookback Period
    The 12-month period running from July 1 of the second preceeding calendar year through June 30 of the preceeding calendar year; the employer's payroll tax liability during this period determines its depositor status for the current year.
  • Lower Authority Appeal
    The lower of two administrative authorities provided by the State unemployment compensation laws to make decisions with respect to appeals. A State agency with only one appeals authority should consider that as a lower appeals authority.
  • Magnetic Media Reporting
    Use of a computerized method of filing information with government agencies, such as magnetic tape, diskette, cartridge, or electronic filing from one computer to another.
  • Mandatory Support
    Withholding that is court-ordered and usually paid to a court or childsupport enforcement agency. Phrases in a support order such as"order served" or "notice of order" identify a mandatory support order.This lien type has a high priority.
  • Mass Partial Unemployment
    Partial unemployment of a large number of workers in a given employing unit occurring at approximately the same time and arising from a reason common to all such workers.
  • Mass Separation Notice
    A report in some States of a mass separation sent by an employer to the State agency listing the names of workers separated and other required data thus eliminating the need for individual separation notices.
  • Maximum Benefit Amount (MBA)
    See Maximum Benefits Payable (MBP)
  • Maximum Benefits Payable (MBP)
    The maximum amount of benefits an individual may receive during a benefit year (or duration of benefits). Also referred to as Maximum Benefit Amount (MBA).
  • Maximum Potential Benefit Amount
    The largest amount of benefits for weeks of total unemployment that an individual may receive under a State or Federal unemployment insurance law.
  • Maximum Potential Duration
    The highest number of weeks of total unemployment for which benefits are payable to any claimant in a benefit year or other period of eligibility under a State or Federal unemployment compensation law.
  • Maximum Weekly Benefit Amount (MWBA)
    The highest weekly benefit amount for a week of total unemployment as provided under a State or Federal unemployment compensation law.
  • Medicaid Program
    Federally funded medical support for low-income families.
  • Medical Support
    The legal provision for payment of medical and dental bills. It can be linked to a parent's access to medical insurance.
  • Medicare
    Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.

    It is funded through the hospital insurance component of FICA. Employer and employee pay matching amounts; no annual wage limit.
  • Merger
    Two or more related entities combine their accounts by filing articles of merger with the Secretary of State. The state unemployment agency must be notified of all mergers, acquisitions and divestitures.
  • Merger / Acquisition / Divestiture Analysis
    When a business transfer takes place through merger acquisition or divestiture some states allow the new company the option of transferring the experience rate of the Predecessor Company. Certain states require the transfer of experience. The transfer can be made in whole or in part dependent on state regulations and the scope of the business change.

    This analysis compares the projected experience rate of the Successor Company with and without the combined experience of the merged company. If the transfer of experience is elected, the successor company is then liable for all unemployment benefit liability attached to the predecessor account. This analysis is to allow employers to elect the method that can create a savings opportunity.

    Each state has unique regulations regarding experience transfer. Each state requires that the appropriate agency be notified of any business change. Many states will not allow a transfer if the sole reason for the change in status is a reduced unemployment tax rate. The employers involved must show that the transfer took place for valid business reasons. In addition, some states require a transfer if there is common ownership between the predecessor and successor employers. Common ownership may exist if the owners of each entity are related by blood or marriage. Also,if the same individuals have the controlling interest of stock or have controlling voting shares in both entities, common ownership may exist.

    Many states have specific criteria for determining common ownership. In states in which a transfer of experience is optional, the employer has the opportunity to potentially save hundreds or thousands in unemployment tax dollars. To realize such savings, it should determine whether a transfer is more beneficial than retaining its current rate or if the successor is a new employer, whether the rate after a transfer is lower than the new employer rate.
  • Merit Rating
    Upon being qualified to do business in a state an employer will receive a state unemployment insurance (SUI) account number. States regulate a period of liability or chargeability in which an employer must serve to be a "qualified" employer. Once served, the employer will receive a rate based on its experience called the "merit" rate. (Also see: New Employer/Non-Merit Rate)
  • Minimum Wage
    The lowest hourly amount an employer can pay employees under federal or state law.
  • Missouri Compensation (MO Comp)
    A discount provided to employers for the timely remittance of income tax withheld from employees working in the state of Missouri.
  • Monetary Determination
    A written notice issued to inform an individual whether or not the individual meets the employment and wage requirements necessary to establish entitlement to compensation under a specific program and, if entitled, the weekly and maximum benefit amounts the individual may receive.
  • Most Recent Bona Fide Work
    Work accepted in good faith with the earnest intent on the part of both the employee and the employer that it be of a continuing nature, from which a worker is last separated prior to filing a claim.
  • Most Recent Employer
    This unemployment insurance benefit charging method, used by several states, charge the individual's most recent employer for all benefits paid. An employer is defined as the most recent employer in differing ways, including if it employed the individual for a specified minimum number of days or weeks, or paid the claimant a specified minimum amount of wages.
  • Multi-Jurisdiction
    Multi-Jurisdiction is a feature that allows the accumulation of tax/taxable information under the same file number for an employee who changes tax jurisdictions and tax statuses (state, local, worked-in, lived-in, exempt, non-exempt) during the course of a calendar year. W-2s for each jurisdiction will be produced at year-end.
  • National Automated Clearing House Association (NACHA)
    A banking industry trade association that promotes the rules and operating guidelines for electronic payments through the ACH Network. NACHA's members provide automatic debit and deposit service for companies and consumers.
  • Negative Reserve Balance
    When the unemployment insurance benefit charges against an employer reserve account have exceeded the contributions paid. Some states will "write off" the negative balance amount to assist employers in maintaining account solvency. The "write off" can have negative effects to the employer tax rate, such as mandatory rate increases up to the maximum rate. The increase may be for one or more years, depending on the state regulations.
  • Negative Wages
    Prior quarter adjustments to an employee's wages input in the current quarter and resulting in negative quarter-to-date (QTD) wages for an employee.
  • Net Pay
    That part of an employee's wages that remains after all deductions have been subtracted (taxes, health insurance, benefits, etc.)
  • New Employer/Non-Merit Rate
    In most cases, an employer newly subject to employment is assigned a new employer or non-merit unemployment insurance rate. Usually, this rate is fixed by legislation. It remains effective unless a legislative change increases or decreases the rate or until the employer has met the state's requirements to qualify for a merit rate based on its unemployment experience. In some states, new employer rates are based on the employers' Standard Industrial Classification (SIC) code. Employers in specific industries (such as: construction, mining or manufacturing) may be assigned a higher new employer rate, due to traditionally higher rates of unemployment in the industry. Also called a standard rate or starting rate.
  • Nil
    Refers to returns that are filed with no reported liability. Nil returns are required by some agencies to keep the employer's tax identification number active on the agency records.
  • Non-cash Fringe Benefits
    Benefits provided to employees in some form other than cash (i.e., company care, health or life insurance, parking) which may be taxable or nontaxable.
  • Non-charged Benefits
    Unemployment insurance benefits, which are paid to claimants, but are not charged against a base year employer.
  • Noncustodial Parent
    A parent who does not have primary custody of a child but who is responsible for financial support.
  • Nonexempt Status Employee
    If you are a "nonexempt" employee, generally you are protected by the wage and hour laws of your state, or of the Federal government (Fair Labor Standards Act). Wage and hour laws require employers to pay at least a certain minimum hourly wage rate and a premium rate for "overtime" work. They are also a guide for determining which on-the-job hours constitute "work," and thus must be compensated.
  • Non-monetary Determination
    A decision made by the initial authority based on facts related to an issue under the following conditions: (1) the present, past, or future benefit rights of a claimant or claimants are involved; (2) there are identifiable documents showing the type and disposition of an issue, the material facts considered in arriving at the determination, and the legal result; and (3) the determination, if it involves the denial of benefits, is issued in the form of a written determination notice to the claimant. (No determination denying benefits may be considered to be a non-monetary determination until the claimant has been afforded an opportunity to furnish any facts he/she may have relating to disqualifying information received from other sources.)
  • Non-monetary Issue
    An act, circumstance, or condition potentially disqualifying under State law.
  • Non-monetary Redetermination
    A decision made under statute, regulation, or well-defined policy specifically requiring the reopening of a non-monetary determination before the administrative appeal stage, and which affirms, reverses, or modifies such determination.
  • Nonprofit or Government Entities
    Nonprofit organizations state and local government entities and political subdivisions are exempt from FUTA under Internal Revenue Code Section 501(c)(3) but are still covered by state unemployment laws. Organizations deemed exempt from FUTA under the Internal Revenue Code are generally allowed the options of either reimbursing the state unemployment fund dollar for dollar with the amount of benefits paid to former employees, or paying unemployment taxes in the same system as for-profit employers. Some state agencies require non-profit and government entities to utilize only the reimbursing method.
  • Nonqualified Plan
    In the context of employee benefits, an employer plan that does not meet IRS qualification requirements.
  • Nonresident Alien
    An individual from a foreign country working in the US who does not pass either the "green card" or "substantial presence" residency test, but is subject to federal income tax on US source income.
  • Nonresidential Parent
    A parent who does not live with or have custody of a child but who is responsible for financial support.
  • Non-sufficient Funds (NSF)
    Referring to a bank account lacking the proper amount of funds to cover a debit; resulting in a monetary transaction that cannot be completed.
  • Non-trust Asset
    A non-custodial fund, such as Direct Debit of Fees.
  • OASDI
    Old Age Survivor and Disability Insurance
  • OBC
    Official Bank Check.
  • Obligation
    Referring to the amount of child support to be paid by the responsible parent. Also is the amount of money to be paid as support by the responsible parent and themanner in which it is to be paid.
  • Obligee
    The person or agency to whom payments are owed (e.g., the custodialparent in the case of a child support order)
  • Obligor
    A person who is bound by a legal obligation or required to pay a lien orgarnishment. The employee who is subject to withholding is the obligor
  • Official Bank Check (OBC)
    Checks drawn on a bank account maintained and reconciled by the providing bank.
  • Offset
    The amount of money taken from a parent's state or Federal Income Tax refund or other government-administered payment (e.g., unemployment insurance or state disability insurance) to satisfy a child support debt.
  • Offset Credit
    A credit towards the Federal Unemployment Tax Act (FUTA) tax allowed to employers who pay a state unemployment tax.
  • One-day Deposit Rule
    If an employer's accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next banking day.
  • Order
    The ruling of a magistrate, judge, or properly empowered administrative officer.
  • OSHA
    Occupational Safety Hazards Act. A federal watchdog of employee safety.
  • Other Compensation or Other Comp
    Any additional earnings, other than wages, declared on an individual's annual tax document and reported on Form 1099. Some types of Other Comp can be included on an employee's W-2. Non-employees usually receive a 1099 rather than a W-2.
  • Overpayment
    An amount of benefits paid to an individual to which the individual is not legally entitled, regardless of whether or not the amount is subsequently recovered.
  • Overtime
    Hours worked by nonexempt employees in excess of maximums set by federal or state law that must be compensated at a premium rate of pay (e.g., under the FLSA, all hours worked over 40 in a workweek must be paid at not less than 150% times the employee's regular rate of pay)
  • Overtime Premium
    Amount equal to one half of an employee's regular rate of pay times all overtime hours worked
  • P&I
    See Penalty and Interest.
  • PAD
    See Pre-Authorized Draft.
  • Partial Claim
    A claim filed by a worker, normally assisted by the employer, for any week wherein the worker did not work a full week nor earn an amount equal or in excess of his weekly benefit amount.
  • Partial Unemployment
    An individual still attached to his employer, but through circumstances beyond his control, did not work a full week and earned less than his weekly benefit amount. A claim for partial unemployment is usually filed by the employer.
  • Part-Total Unemployment
    A week during which an individual works less than full time due to lack of work and earns less than his weekly benefit amount and there is no attachment to a regular employer.
  • Paternity Judgment
    The legal determination of fatherhood.
  • Payee
    A person or agency to whom payments for a wage garnishment are sent.In the case of child support, the payee can be the custodial parent or thechild support agency enforcing the child support order
  • Payroll Cycle
    Refers to the length of time between payrolls. For example, if an employer processes payroll every week, each week is considered a new payroll cycle.
  • Payroll Variation (Alaska)
    The state compares gross payroll from one quarter to the next-to determine a quarterly decline in payroll. (Increases in gross payroll are assigned a zero.) The quarterly decline is divided by the prior quarter gross payroll to determine the quarterly decline ratio. The quarterly decline ratios are added together and averaged. The average is compared to a state table to derive the employer tax rate.
  • Peg Balance
    The minimum bank balance required for any given account.
  • Penalty and Interest (P&I)
    Agency assessments for late deposits and/or filings.
  • Penalty Rate
    Some states will assign a penalty rate-if an employer is delinquent in paying taxes or filing quarterly contribution and wage reports. The penalty rate is often as high or higher than the maximum rate. In some cases, an additional percentage is added to the originally assigned rate in lieu of a specified penalty rate.
  • Pend/Hold
    To pend is to delay payment of benefits because there is a question about the claimant's eligibility.
  • Period of Employment
    The period beginning with the first day an employee works for an employer and extending through the last day he works prior to a termination.
  • PIN
    Personal Identification Number.
  • PIT
    Personal Income Tax
  • Plaintiff
    A person who brings an action, complaint, or suit in a civil case.
  • POA
    See Power of Attorney.
  • Pooled Account
    Some states allow certain not-for-profit employers a program to combine the unemployment insurance benefit charges of two or more reimbursable accounts. The benefit charges are pooled and typically one member of the pool is responsible for management of the program. Each member of the pool retains their own SUI account and remains responsible for payment of contributions. A fund in which all contributions are mingled and undivided and from which benefits are payable to all eligible claimants.
  • Pooled Account Analysis
    This analysis outlines the pooled tax rate for the current and previous year(s). Detail of tax savings/loss is calculated and a determination is made as to the benefit of maintaining the pooled account.
  • Positive Reserve Balance
    When the contributions paid into an employer's SUI account have exceeded the benefit charges paid out during the specified period.
  • Potential Duration
    The total number of weeks of total unemployment for which an individual claimant may receive benefits in a benefit year or period of eligibility under the entitlement provisions of a State or Federal unemployment compensation program or any other program administered by a State agency.
  • Power of Attorney (POA)
    A legal document authorizing the PEO to act as agent for clients when dealing with state and federal agencies. Without a valid Power of Attorney form on file, the agencies are not authorized to release information to any party other than the employer.
  • PR
    Payroll.
  • Pre-Authorized Draft (PAD)
    A document similar to a check used to debit taxes from a client's bank account if the client's bank is not a member of NACHA, or if the account cannot be accessed through a NACHA electronic transaction.
  • Predecessor
    The entity that existed prior to a partial or total transfer of a business.
  • Pre-Note or Pre-Notification
    A zero-dollar ACH transaction used to verify the accuracy of bank account information prior to automatic debits or credits, as in the case of direct deposit. The pre-note transmission serves as a notification to the bank of an ADP client or client's employee that actual ACH transactions will be processed against the account.
  • Private Support
    Withholding that is the result of a private agreement between parties or requested by the employee and often paid to a third party, for example, a trustee, bank, attorney, or estate. A phrase in a support order such as "agreement between the court and listed parties" identifies a private support order. This lien type has a low priority; it takes precedence over employee wage assignments and other voluntary deductions only.
  • Professional Employer Organization (PEO)
    A company that leases employees, to another business, on a contract basis. They handle all personnel matters and are generally considered the employer of the leased employees.
  • Property Right
    The claimant has property right to benefits once a valid monetary determination is issued, found the claimant to be nonmonetarily eligible for benefits and allowed waiting period credit or benefits. Once the claimant has established property rights, benefits cannot be stopped or pended without giving the claimant due process.
  • Prorating
    Prorating is the most common unemployment insurance charging method. Each of an individual's base period employers is simultaneously charged a proportional percentage of total benefits paid. The percentage is based on the individual's total base period wages paid by each affected employer.
  • Public Assistance
    Money granted from the Aid to Families with Dependent Children (AFDC) program to a person or family for living expenses. Eligibility is based on need.
  • Purged
    Refers to outdated information or records that are removed
  • QTD
    See Quarter-to-date.
  • Qualified Employer
    An employer who is eligible for a calculated tax rate by virtue of fulfilling two requirements: employment during certain specified periods, and timely payment of taxes.
  • Quarter (QTR)
    A three-month segment of a year, ending on March 31, June 30, September 30, or December 31.
  • Quarterly Contribution and Wage Reporting
    Tax report filed during April, July, October and January for the previous calendar quarter. Reported information for the quarter will include gross payroll, taxable payroll, non-taxable payroll, SUI tax rate and SUI taxes due. Certain states reporting will include or require information regarding supplemental taxes, surcharges, credits, penalties and monthly employee counts. The information reported is used by the state agency in determining future SUI tax rates and may also be utilized by the federal government for statistical purposes in labor reporting.
  • Quarter-to-date (QTD)
    Refers to values accumulated to date during a calendar quarter.
  • RAF
    See Reporting Agent File.
  • Receivable
    An outstanding balance due for services rendered.
  • Reciprocity
    An arrangement between taxing jurisdictions where a Lived In jurisdiction allows a credit for employee taxes paid to the Worked In jurisdiction.
  • Recon or Reconciliation
    A term usually referring to a quarterly or annual return which summarizes tax filings and deposits made during the quarter or year.
  • Region
    Area in which the client is located
  • Regular Compensation
    Benefit payments to individuals with respect to their unemployment under any State unemployment compensation law, including payments pursuant to 5 U.S.C. chapter 85, but not including additional, extended, Disaster Unemployment Assistance, or Trade Readjustment Allowances.
  • Reimbursable Employer
    Certain nonprofit organizations, State or local government and political subdivisions which elect or are required to pay into the State unemployment fund a sum in lieu of contributions as provided in the State unemployment compensation law.
  • Remuneration
    Any payments of wages, as defined by the state. Can include payment of regular wages, vacation pay, severance pay, bonuses and options. The definition of wages varies by state.
  • Reopened Claim
    The first claim filed after a break in claim series during a benefit year caused by other than intervening employment such as illness, disqualification, unavailability, or failure to report for any reason other than job attachment.
  • Reorganization
    Reorganization of a commonly owned entity may involve a company changing its federal identification number in whole; or rearranging the corporate structure by moving divisions or subsidiaries under a different federal identification number.
  • Replacement Check
    Issued to a client when a refund check is not received.
  • Reporting Agent File (RAF)
    Also known as the Representative Address File, this refers to the service bureau that deposits and/or files payroll tax returns on behalf of an employer. The federal government directs some inquiries, notices, and other written communication to both the employer and the service bureau.
  • Representative Address File
    See Reporting Agent File.
  • Requalification
    A process by which a claimant may reestablish eligibility for unemployment insurance through reemployment following a determination of ineligibility and a period of disqualification.
  • Reserve Account
    A separate account maintained in a State unemployment fund with respect to a subject employer to which are credited contributions paid by such employer and to which are charged all and only those benefits which are based on services performed for such employer.
  • Reserve Balance
    The sum of all contributions made to an employer SUI account-minus benefit charges. Monies in the account are not refundable to the employer.
  • Reserve Ratio
    The ending SUI reserve balance (as shown on the tax rate notice) divided by the average taxable payroll for the previous 3 to 5 year period, dependent on the state.
  • Reserve Ratio Formula
    Prior SUI Reserve Balance (plus) Contributions (minus) Charges = NEW RESERVE BALANCE
  • Retroactive Pay
    Pay for time worked in a previous workweek; retroactive pay must be applied to both regular and overtime hours.
  • Returned Item
    The return of an ACH debit or Pre-Authorized Draft; or the rejection of a reverse wire transfer to ADP's bank. A returned item is a result of a bank's failure or refusal to honor the charge presented, or the inability of the depository bank or the federal system to process the item because of erroneous information.
  • Reversal
    Any ACH entry or file that is sent within the required deadlines to correct or reverse an erroneous entry or file.
  • Reverse Wire Transfer
    See Wire Transfer.
  • Revised Rate
    A rate issued when any factor of the original rate determination is modified. Examples of modification include a discrepancy in calculation of taxable payroll, contributions, benefit charges, account balance and reserve or benefit ratios.
  • Salary
    Compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.
  • Sarbanes-Oxley Act
    The Sarbanes-Oxley Act was signed into law in an effort to prevent or reduce the incidence of corporate and securities fraud. Significantly, the Act (technically named "The Corporate and Criminal Fraud Accountability Act of 2002") provides protection to, and even encourages, employees who would report such fraud.

    Sarbanes-Oxley provides the most forceful protections to date for corporate whistleblowers. It prohibits retaliation against whistleblowers, reinforces the act of whistleblowing, and requires public companies to adopt a code of business ethics and protocols for receiving and reviewing reports of ethical wrongdoing. More importantly, the Act enforces compliance by making both corporations and individuals accountable for their actions via administrative, civil, and criminal enforcement mechanisms.
  • School Rate
    Percentage of withholding for a school district.
  • SDI
    See State Disability Insurance.
  • Seasonal Company
    Companies, such as summer camps and farms, that do not process payrolls in every quarter of the calendar year.
  • Section 125
    IRS section setting forth rules & regulations regarding pre-tax deductions for some insurance premiums, un-reimbursed medical expenses and child/dependent care.
  • Separation Record
    Documentation prepared by an employer to outline reasons why an employee is no longer employed. The documentation can include disciplinary action, policy or procedure guidelines and any written statement by involved individuals. For additional information about effective documentation contact your UCS Client Service Representative. To download a separation form click here
  • Settlement Date
    The date the Federal Reserve Bank records an exchange of funds.
  • Severance Pay
    A payment made by an employer to terminated employees (usually those who are terminated through no fault of their own) that is designed to tide them over until new employment is secured.
  • Shift Differential
    Extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings).
  • Short term disability (STD)
    Short term disability (STD) pays a percentage of your salary if you become temporarily disabled, meaning that you are not able to work for a short period of time due to sickness or injury (excluding on-the-job injuries, which are covered by workers compensation insurance). A typical STD policy provides you with a weekly portion of your salary, usually 50, 60, or 66 2/3 percent for 13 to 26 weeks.
  • SIT
    See State Income Tax.
  • Social Security Administration (SSA)
    The federal government agency that administers social security.
  • Social Security Number (SSN)
    An individual's taxpayer identification number; it consists of nine digits in the format 000-00-0000.
  • Social Security/Medicare (SS/MED)
    Referring to the requirement by the Federal Insurance Contribution Act that employers and employees to contribute to retirement, medical, and disability insurance. The combined (FICA) rate is withheld from employee wages up to a set taxable limit and matched by a required employer contribution.
  • SOD
    See Statement of Deposits and Filings.
  • Sole Proprietorship
    The singular owner of a business.
  • Special Tax Rate
    A rate assigned to the employer account that did not result directly from a computation method under regular experience-rating provisions of the State unemployment compensation law.
  • SPLS
    See State Parent Locator Service.
  • Spousal Support
    Support Payment made by one spouse to the other during or after legal separation or divorce (also known as alimony). See also Support Order
  • SS/MED
    See Social Security/Medicare.
  • Stale Dated Checks
    Checks that have not been negotiated within a specified time limit.
  • Standard Contribution Rate
    The basic rate of contributions from which variations are computed under the experience-rating provisions of a State unemployment compensation law.
  • Standard Industrial Classification Code (SIC)
    Each employer, upon application for a federal employer identification number (FEIN) is assigned a SIC number. The Standard Industrial Classification was developed for use in the classification of businesses by type of activity in which they are engaged as a way to promote uniform collection of data at the federal level. SIC codes are based upon the primary activity or output that a company is engaged in.
  • State Disability Insurance (SDI)
    Referring to a state-established compensation plan for the support of employees unable to work due to an illness or injury. Some states require employee and employer (EE/ER) contributions to a disability insurance fund for payment of SDI benefits.
  • State Income Tax (SIT)
    A withholding tax deducted from an employee's wages as required by a state.The amount of withholding varies with the amount of earnings, frequency of pay, number of claimed exemptions, and marital status.
  • State Parent Locator Service (SPLS)
    A service operated by state Child Support Enforcement agencies to locate absent parents in order to establish paternity, and to establish and enforce child support obligations.
  • State Unemployment Insurance (SUI)
    A quarterly tax paid to a state unemployment agency. An experience rate assigned to the employer and a taxable wage limit established by the agency determine the amount of the tax due. The SUI tax can be paid by the employee (SUIEE) or paid by the employer (SUIER) or both - depending on the state's rules.
  • State Unemployment Insurance Identification
    The identification number assigned to employers by a state agency to control unemployment related reporting and accounting functions. The number will not be that same as the FEIN issues by the federal government, however, several states do use the FEIN as core to the SUI. To download a SUI application click here
  • Statement of Payment
    Wage Garnishment report that provides the client details of when Employee disbursements release and the payment method.
  • STD
    See Short Term Disability
  • # Stoppage of Work
    Under the labor dispute provision, a substantial curtailment of the normal operation of an employer at a given location.
  • Subject To
    Typically referring to wages or compensation that are liable to taxation.
  • Subsidiary
    A separate business entity filing reports under state and federal account numbers-different than those of the parent company. (Also see: Division)
  • Successor
    The remaining entity, after a partial or total transfer of business.
  • SUI
    See State Unemployment Insurance.
  • SUI Exempt
    Some select employers are excluded from paying State Unemployment Insurance tax. Exempt employers are not required to file any quarterly returns or Employee Wage Detail Reports.
  • SUI Less FUTA
    Used to refer to cases where the employee wages are exempt from State Unemployment Insurance (SUI) taxes, but not from Federal Unemployment (FUTA) taxes. When SUI taxable wages are less than FUTA taxable wages, the employer is liable for the full FUTA tax rate on the exempt wages.
  • SUI Reimbursable
    The status of nonprofit organizations or employers with a history of few unemployment claims. Instead of quarterly contributions, the employer reimburses the state agency for unemployment claim benefits paid to former employees. These employers are required to file quarterly Wage Detail Reports with the agency.
  • SUI Surcharge
    An additional temporary fee assessed by a state unemployment agency in order to pay back loans from federal unemployment funds or to replenish low state unemployment funds.
  • Sundry
    Small amounts (less than $2.00) which are written off rather than charged or credited.
  • Supplemental Wages
    Compensation received by employees other than their regular pay; such as bonuses, commissions, and severance pay; income tax may be withheld from such payments at a flat rate under certain circumstances.
  • Supplemental Wages
    Compensation received by employees other than their regular pay; such as bonuses, commissions, and severance pay; income tax may be withheld from such payments at a flat rate under certain circumstances.
  • Support Order
    The attachment of a portion of an employee's wages for child, spousal, ormedical support. This wage attachment can be the result of a court order(mandatory) or an agreement between involved parties (private).
  • Surcharges
    Contribution assessments made to finance training, health care and administrative costs. Certain states also maintain special funds for the possibility that the states' unemployment trust fund may become insolvent.
  • Tax Audit
    This report verifies the accuracy of the most current SUI tax rate(s) assigned by the State agency. Benefit charges and credits are verified to assure the state agency has assigned the correct tax rate for each PEO client.
  • Tax Bracket
    The level of income tax of a given individual, as indicated by the amount of taxes he/she pays on his/her final dollar of taxable income. also called marginal tax bracket or tax rate.
  • Tax Levy
    The attachment of a portion of an employee's wages (after credit forfederal or state exemptions) to the Internal Revenue Service (IRS) or state government for payment of delinquent taxes.
  • Tax Rate
    The unemployment tax rate assigned to an employer by the state agency. The rate multiplied by taxable wages is the amount of quarterly contributions owed by an employer.
  • Tax Rate Analysis
    This analysis compares the tax rates of two or more years. The tax savings/loss is calculated for the current year or the cumulative of two or more years.
  • Tax Rate Notice
    Annual report issued by the state agency showing the unemployment tax rate assigned for the year period. Most states utilize a calendar year period while a small number utilize a fiscal year period.
  • Tax Rate Projection
    This analysis can project the SUI tax rate for the next year. Employers use this analysis most often for budgeting purposes.
  • Tax Rate Verification
    ADP-UCS verifies the accuracy of the SUI tax rate and its components. Tax rate assessment found to be in error is protested to the appropriate state agency. Protests made to the state agency are closely monitored and the result is communicated to the employer.
  • Tax Service
    An ADP tax filing service offered primarily to businesses with more than 1,000 employees who process their payroll in-house or use ADP for only a portion of their payroll processing.
  • Taxable
    The actual amount of wages or compensation that are subject to a tax type and used to calculate the tax due.
  • Taxable Fringe Benefit
    The value of certain noncash fringe benefits received from an employer is considered part of an employees compensation. An employer generally must withhold income tax on these benefits from an employees regular pay for the period the benefits are paid or considered paid. For moreinformation on taxable fringe benefits, see Fringe Benefits under Employee Compensation in Publication 525.
  • Taxable Payroll
    The dollar value of all wages subject to the unemployment insurance tax.
  • Taxable Wage Base
    The maximum amount of employee compensation subject to Social Security, FUTA, and state unemployment insurance taxes.
  • Taxpayer Identification Number (TIN)
    A social security number, employer identification number, or an individual taxpayer identification number which serves as the taxpayer's account number with the IRS.
  • Tentative Credit
    The credit applied when State Unemployment Insurance (SUI) wages are less than Federal Unemployment (FUTA) wages.
  • Third Party Sick Pay (3PSP)
    Third Party Sick Pay (3PSP) is a disability insurance benefit that provides employees with partial or full wage benefit payments while on long-term medical leave. The payments are made to employees through an insurance company, union plan, or a state temporary disability plan instead of through their employer.
  • Tipped Employee
    An employee who works as a food server, baggage handlers, hairdressers, and other occupations in which the employee regularly receives $30 or more a month in money and goods for services performed by. Tips go beyond the stated amount of the bill and are given voluntarily.
  • Transfer of Experience - Total or Partial
    See Merger/Acquisition/Divestiture Analysis
  • UCM
    See Unemployment Compensation Managementsm.
  • UIFSA
    See Uniform Interstate Family Support Act.
  • Unemployment Compensation for Federal Employees (UCFE)
    The Federal program that provides benefits to Federal employees established by 5 United States Code, Chapter 85. Supplemental extended compensation is payable to Federal employees under other provisions of State and/or Federal laws during periods of high unemployment.
  • Unemployment Compensation for former military (UCX)
    The Federal program that provides benefits to former military established by 5 United States Code, Chapter 85.
  • Unemployment Compensation Services (UCS)
    A comprehensive service designed to manage the unemployment compensation process, thus, eliminating unnecessary claims and costly premium overpayments. (Also see: Total Tax, Total Tax Plus, and Unemployment Compensation Management)
  • Unemployment Compensation(UC or UI)
    A program under which an individual who is unemployed through no fault of his own is paid weekly benefits based upon his past wages in employment covered by State or Federal UC laws.
  • Uniform Base Period
    A base period which starts on the same calendar date for a new or transitional claim for all claimants.
  • Uniform Benefit Year
    A benefit year which starts the same date for all claimants in a State.
  • Uniform Duration
    A provision of State unemployment compensation laws establishing the same number of weeks of potential duration for all eligible claimants.
  • Uniform Interstate Family Support Act (UIFSA)
    A national support law eliminating the possibility of two or more valid (and possibly conflicting) child support orders existing in different states for the same child. UIFSA allows the child's home state to obtain personal jurisdiction over the non-custodial parent (to the extent permitted by the Constitution).
  • Uniform Reciprocal Enforcement of Support Act (URESA)
    A state law that provides a mechanism for establishing and enforcing support obligations when the non-custodial parent lives in one state and the custodial parent and child (or children) live in another.
  • URESA
    See Uniform Reciprocal Enforcement of Support Act.
  • Vesting
    An ERISA guideline stipulating that employees must be entitled to their benefits from a pension fund, profit-sharing plan or Employee Stock Ownership Plan, within a certain period of time, even if they no longer work for their employer.
  • Visitation
    The right of a non-custodial parent to visit or spend time with his or her children following separation or divorce.
  • Voluntary Contribution
    Additional monies paid into an employer experience rated SUI account, other than quarterly payments. A voluntary contribution can allow the employer to obtain a more favorable tax rate. In most states the contribution will increase the reserve balance of the account while other states credit the contribution to erase previous charges. Nearly half of the states allow employers to make a voluntary contribution payment to their experience rated account. From year to year, additional states may also allow a voluntary contribution.
  • Voluntary Plan Disability Insurance (VPDI)
    A state option allowing an employer and/or individuals to purchase private disability insurance in place of a State Disability Insurance (SDI) plan. The employer or an insurance carrier administers this private insurance.
  • VPDI
    See Voluntary Plan Disability Insurance.
  • W-2
    A statement of an individual's annual wages and taxes provided by an employer that must be included with the employee's federal, state, and city income tax returns.
  • W-3 - Transmittal of Income and Tax Statements
    A form summarizing a company's total wages and tax withholdings. The W-3 accompanies a W-2 statement and is to be filed with the Social Security Administration.
  • W-4 - Employee's Withholding Exemption Certificate
    A government form used to indicate the number of personal exemptions an employee wishes to claim.
  • Wage and Separation Report
    A form used by a State agency to request a report from a base period employer regarding the wages earned by the claimant and reason(s) for separation from employment.
  • Wage Attachment
    An employee's involuntary transfer of wages for payment of a support order, federal or state tax levy, creditor garnishment, student loan, or bankruptcy.
  • Wage Base
    The amount of an employee's pay that is subject to wage garnishment (also called the lien basis). The lien wage base varies by lien type and jurisdiction. Often it is disposable income-that is, gross pay minus taxesand other earnings or deductions required by law
  • Wage Claim Penalty
    A penalty assessed by a State Unemployment Insurance (SUI) agency when an employer fails to provide a timely response to an unemployment claim.
  • Wage Credits
    Wages earned by persons working in employment covered by State unemployment compensation laws.
  • Wage Detail
    Typically referring to the Employee Quarterly Wage Detail Report which must be filed with SUI returns and some returns for cities or localities.
  • Wage Record
    Individual name, SSA number, wages and hours worked information.
  • Wage Report
    A quarterly report by a subject employer listing the name, SSA, wages and hours worked of an individual workers in employment during the quarter.
  • Wage Withholding
    An automatic deduction of all or part of an employee's wages to pay some debt or financial obligation such as child support. Wage withholding can be voluntary or involuntary
  • Wages
    Employee earnings.
  • Waiting Period
    A week of unemployment for which a claimant does not receive compensation but must meet the same eligibility requirements that are necessary to qualify for receipt of compensation for subsequent weeks of unemployment during the benefit year. (In some States, the waiting period, after specified periods of unemployment, may become compensable.)
  • Waiver
    Referring to the authorization a client gives to debit additional taxes from its bank account with no waiting period. This is also called Immediate Authorization to Charge.
  • Week of Partial Unemployment
    A week in which an individual works less than regular full-time hours for his/her regular employer because of lack of work, and earns less than the amount specified in the definition of a week of total unemployment but more than the allowable earnings prescribed by the State unemployment compensation law, so that, if eligible, the individual receives less than his/her full weekly benefit payment.
  • Week of Unemployment
    Any week during which an individual is totally or partially unemployed.
  • Weekly Benefit Amount (WBA)
    The amount payable to a claimant for a compensable week of total unemployment.
  • Weekly Earnings Allowance
    The amount prescribed by law that a claimant may earn during a week without any reduction in the weekly benefit amount for that week.
  • Weeks Claimed
    The weeks covered by intrastate continued claims and interstate continued claims taken as agent State for which waiting period credit or payment of compensation is requested.
  • Weeks Compensated
    The number of weeks of unemployment for which benefits are paid.
  • WGPS
    See Wage Garnishment Processing Service.
  • Wire Transfer
    A special banking arrangement that enables the PEO client to transfer monies for tax liabilities directly to a Tax Impound Account. A reverse wire transfer is where the PEO initiates the request to the client's bank to debit the client's account. A direct wire transfer is where the client initiates the request.
  • Withholding Allowances
    For each withholding allowance claimed, the employee reduces the amount of wages subject to federal income tax withholding.
  • Withholding Rate
    Total percentage of withholding for a taxing jurisdiction.
  • Witness
    By broad definition this is a person who offers testimony at a hearing. The most important type of witness is the first-hand witness. This is a person who actually took part in, or viewed the incident(s) that lead to the separation of the former employee. In cases of a voluntary quit, it is the person who accepted the resignation. In cases of a discharge, it is the person who was present at the incident that caused the employer to make a decision to discharge the employee. Other types of witnesses include policy experts (Human Resources) and technical experts (technicians, medical personnel) who may not have taken part of the events directly, but do have relevant information to offer at a hearing.
  • Work sharing
    A plan that an employer uses to avoid employee layoffs, by reducing the work hours of a group of employees. The employees may collect partial unemployment benefits to supplement their income. Requirements vary from state-to-state and an employer should carefully review those requirements prior to committing to such a program.
  • Worked In
    The city in which an employee works.
  • Workers Compensation
    A state administered insurance covering worker's job related injury and illness. Providing the employee with a percentage of their wages while unable to work.
  • Year-to-Date (YTD)
    Values accumulated to date for a calendar year.