Table of Contents
This is a auto-generated Article of all your definitions within the glossary.
Glossary
This is a auto-generated Article of all your definitions within the glossary.
-
14th Month Pay
A "14th month" payment is an extra month's salary given to employees in certain countries, typically around the holiday season or during the summer. While not mandatory in most countries, it is intended to provide financial assistance during periods of increased spending, such as vacations and holidays.
-
401(k) Plan
A 401(k) plan is a retirement account specific to the United States, offered by companies to their employees. It allows employees to contribute a portion of their pre-tax income to a tax-advantaged account that invests in various securities. Employers may also make contributions to these accounts on behalf of their employees.
-
Account Number
Account numbers are unique identifiers used to track individual bank accounts. In the context of payroll, they are crucial for transactions like deposits, withdrawals, and transfers. They ensure that money is directed to the correct account.
-
Bank Payment File
A bank payment file is a digital document used in payroll to facilitate the accurate transfer of an employee's payment to their designated bank account. It contains essential information such as payment amount, transaction date, and any additional details required by the bank to process the payment. Bank payment files ensure that payments are made securely, on time, and in the correct currency.
-
Custom pay rates
Custom Pay Rates refer to compensation rates that are tailored to specific roles, tasks, or projects within an organization. Instead of employees receiving a standard hourly rate, these rates vary depending on the nature of the work performed. Custom pay rates are commonly employed in industries like professional services and construction, where employees may engage in diverse tasks with distinct market rates and skill requirements.
-
Dislocated Worker
A dislocated or displaced worker is an individual who has experienced job loss due to circumstances beyond their control. These circumstances can include layoffs, business closures, self-employment challenges resulting from natural disasters or unforeseen economic events, or being a displaced homemaker who is no longer supported by an unemployed spouse.
-
Employee Self-Service (ESS)
Employee Self-Service (ESS) is a system or portal that allows employees to access and manage their personal and payment information online. It enables employees to perform tasks related to their employment and compensation, which are typically handled by HR and payroll teams.
-
Foreign Exchange (FX)
The Forex Market, often referred to as FX or Forex is the largest global financial market. It operates as a decentralized system where one currency is exchanged or converted into another.
-
Gender Pay Gap
The gender pay gap refers to the difference in pay between men and women in the workplace, typically calculated as a percentage. It reflects the historical disparity in compensation between genders.
-
Gig Economy
The gig economy, also known as the freelance or on-demand economy, refers to a labour market characterized by short-term, temporary, or freelance work arrangements. It often involves individuals working on a project-by-project or task-by-task basis for various clients or employers.
-
Gig Worker/Employee
A gig worker or gig employee is an individual who works in the gig economy, often on a short-term or freelance basis. They perform tasks, projects, or jobs for various clients or platforms, typically without traditional long-term employment contracts.
-
Payout
A payout refers to transactions made by companies to various stakeholders. It's commonly associated with payments to employees as part of payroll. Payouts can take the form of electronic transfers, such as mobile and wire transfers, and can include salary, bonuses, commissions, and more.
-
Payroll Automation
Payroll automation involves digitally systematizing a company's employee payments. It simplifies payroll processes, calculates tax withholdings, and ensures timely and accurate payments. It is used to save time, reduce errors, enhance compliance, and streamline payroll operations.
-
Payroll Taxes
Payroll taxes are payments that employers make on behalf of their employees when running payroll. These taxes are calculated based on a percentage of an employee's gross pay. Employers are responsible for calculating, withholding, and remitting payroll taxes to the appropriate authorities, including federal, state, and local agencies.
-
Pay Stub
A pay stub, also known as a payslip in some regions, is a document provided to employees during each pay period. It contains essential information about an employee's earnings, tax withholdings, deductions, and net pay.
-
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a messaging network used to securely send and receive messages and financial transactions between more than 11,000 global member institutions in over 200 countries. SWIFT is the largest network for international payments and settlements globally.
-
Upper Earnings Limit (UEL)
The Upper Earnings Limit (UEL) is the maximum earnings threshold for Class 1 National Insurance contributions in the UK. It represents the highest income level on which employees are required to pay these contributions.
-
W-2 Form
A W-2 form is a document used in the United States to report employees' annual tax withholding and earnings data. It includes information such as social security and Medicare contributions, income taxes withheld, and details about the employee's compensation.
-
Working Days
Working days are the days of the week when people typically work. In most Western countries, working days are typically Monday through Friday.
-
Workplace Absenteeism
Absenteeism in the workplace occurs when employees repeatedly fail to show up for work without a good reason or excuse. It typically involves unexcused and unplanned absences. In contrast, planned absences occur when employees request time off for personal reasons or vacations.
-
Year to Date
Year-to-date, or YTD, in payroll, refers to the total amount of an employee's earnings, taxes, and deductions from the beginning of the calendar year up to the current date. It is a cumulative record that helps track an employee's financial transactions for the year.