Common Payroll TermsDirect Deposit
Definitions:Direct DepositDirect Deposit is an electronic transfer of the Net Pay of your paycheck directly into your bank account. Disability Disability, also known as SDI, is a California state disability insurance program for employees unable to work on a short term basis due to illness and non-work injuries. Earnings Official record of wages paid. Exempt Employee As per federal Fair Labor Standards Act provisions, classification of employees are not eligible for Overtime. Exemption In reference to W4 form, employee statement as per their status for income tax or income tax withholding. Federal Work Study Higher Education financial aid program offered in Financial Aid awards where wages earned by qualified student employees for educational expenses. FICA Federal Insurance Contribution Act is the federal government program that created the Social Security (Old Age Security Disability Insurance) and Medicare taxes. Fiscal Year Chapman University fiscal year is June 1 through May 30. Form DE4 DE4 form is State of California Employee Withholding Allowance Certificate in reference to state income taxes. Form I-9 INS form to verify identity and eligibility to work in the United States. Form W2 W2 form reports taxable wages paid to an employee to federal, state, and local agencies. W2 form reports only taxable wages paid in the calendar year, not wages earned. W2 forms are mailed out by January 31 each year for the prior year’s wages. Form W4 W4 form is Employee Withholding Allowance Certificate in reference to federal income taxes. Garnishment Garnishment is a type of non-voluntary withholding order issued by a federal or state court or agency to withhold money from an employee’s paycheck and pay funds directly to a third party. Gross Pay Gross pay is a total amount of pay prior to taxes, voluntary deductions, and non-voluntary deductions withheld. GTL (Group Term Life) Term life insurance provided by the Chapman. IRS reg. states if a Term Life Insurance policy is in excess of $50,000 the excess is a taxable fringe benefit on the premium amount. Hand Check A manually processed check is a check that is not processed on regular scheduled payday. Typical Hand Check is to issue a final pay check to an employee who is terminated between paydays. Home Department Home department is the department that an employee is employed or hired into. Income Withholding Allowance In reference to W4 form, employee statement as per their status for income tax or income tax withholding. Income Withholding Tax State and/ or federal taxes withheld from employee’s paycheck in anticipation of the employee aggregate tax liability as claimed by the W4 or DE4. Medicare Tax Medicare tax is a component of social security taxes created by the Federal Insurance Contribution Act. Medicare tax is 1.45% of taxable wages without a taxable wage limit. Monthly Pay Period Designated pay cycle beginning from the first to the last day of the month and that has a payday by the 26th of the month. See Calendar for details. Net Pay Gross pay is a total amount of pay after taxes, voluntary deductions, and non-voluntary deductions withheld. Non-exempt employee As per federal Fair Labor Standards Act provisions, classification of employees are eligible for Overtime, and required to submit detailed time sheets on all hours worked. Permanent Resident A non-U.S citizen authorized to live and work in the United States on a non-temporary basis. Pre-tax Deduction Pre-tax deductions are voluntary deductions which are exempt from taxes. (i.e. medical insurance and health insurance) Semi-monthly Pay Period Designated pay cycle beginning from the 1st to the 15th, and 16th to the last day of the month which have paydays of 10th and 26th, respectively. See Calendar for details. Social Security Tax Social Security tax is a component of social security taxes created by the Federal Insurance Contribution Act. Social Security taxable wage contribution rate is 6.20%. Tax Levy Tax Levy is a type of non-voluntary withholding order issued by a federal or state taxation jurisdiction agency to withhold money from an employee’s paycheck and pay funds directly to a third party. Termination Termination is a status of which an individual is no longer employed for an employer on a voluntary or non-voluntary basis. Visa An official authorization on a passport granting the bearer authorization to a foreign country. Wages Aggregate payments for services rendered. Withholding Notice Withholding Notice is a type of non-voluntary withholding order issued by a federal or state court jurisdiction to withhold money from an employee’s paycheck and pay funds directly to a third party. Most common Withholding notices are for Child Support or Spousal Support. |
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