Commission Basis (p. 330)
A method of paying employees according to a percentage of net sales.
Compensation record (p. 342)
See Individual earnings record: An employee record that contains information needed to compute earnings and complete tax reports.
Employee (p. 324)
A person who is hired by and works under the control and direction of the employer.
Employee’s Withholding Allowance Certificate, Form W-4 (p. 332)
A form used to claim exemption (withholding) allowances.
Exempt employees (p. 336)
Salaried employees who hold supervisory or managerial positions who are not subject to the maximum hour and overtime pay provisions of the Wage and Hour Law.
Federal unemployment taxes (FUTA) (p. 326)
Taxes levied by the federal government against employers to benefit unemployed workers.
Hourly rate basis (p. 329)
A method of paying employees according to a stated rate per hour.
Independent contractor (p. 324)
One who is paid by a company to carry out a specific task or job but is not under the direct supervision or control of the company.
Individual earnings record (p. 342)
An employee record that contains information needed to compute earnings and complete tax reports.
Piece-rate basis (p. 330)
A method of paying employees according to the number of units produced.
Medicare tax (p. 325)
A tax levied on employees and employers to provide medical care for the employee and the employee’s spouse after each has reach age 65.
Payroll register (p. 336)
A record of payroll information for each employee for the pay period.
Salary basis (p. 329)
A method of paying employees according to an agreed-upon amount for each week or month.
Social security (FICA or OASDI) tax (p. 325)
A tax imposed by the Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability benefits.
Social Security Act (p. 325)
A federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act.
State unemployment taxes (SUTA) (p. 327)
Taxes levied by a state government against employers to benefit unemployed workers.
Tax-exempt wages (p. 331)
Earnings in excess of he base amount set by the Social Security Act.
Time and a half (p. 325)
Rate of pay for an employee’s work in excess of 40 hours a week.
Wage-bracket table method (p. 332)
A simple method to determine the amount of federal income tax to be withheld using a table provided by the government.
Workers’ compensation insurance (p. 327)
Insurance that protects employees against losses from job-related injuries or illnesses, or complensates their families if death occurs in the course of the employment.
