Terms
What is salary basis
Paying an agreed upon amount on a set basis
What is Medicare Tax
A tax on employees and employers to provide medical care when employee and spouse reach 65
What is an employee
A hired worker
What is Hourly rate basis
Paying set amount per hour worked
What is a credit memorandum
A form that explains any addition other than a deposit to a checking account
What is an independent contractor
Someone who is temporarily hired to do a task
What is FICA
A tax that provides retirement and disability benefits
What is workers compensation insurance
Protects against job related injuries
What is Commission Basis
Paying based on net sales
What is a statement of account
A form sent to a firms customers showing transactions during the month and the balance owed
What is the individual earning record
Record with all information needed to compute earnings and complete tax reports
What is a w4
Form used to claim allowances
What is the social security act
Federal act which provides benefits to employees and their families
What is piece rate basis
Paying based on how much produced by employee
What is an EFT
An electronic transfer of money from one account to another
What is time and a half
Pay rate for an employee working more than 40 hours per week
What is FUTA
Taxes by federal government to benefit unemployed workers
What are tax exempt wages
Earnings more than the base set by the SSA
What is a payroll register
A record of payroll information for each employee for the pay period
What is a bank reconciliation statement
A statement which accounts for all differences between the balance on the bank statement and the book balance of cash
What is the wage bracket table method
Way to determine amount of federal income tax to withhold
What is SUTA
Taxes by state government on employers to benefit unemployed workers
What is a workers compensation record
What is an Exempt employee
Employees who are not protected under the maximum hour and overtime pay provisions
What is an NSF check
A check returned to the depositor unpaid because of insufficient funds in the drawer’s account