Here you can find special terms and definitions of quickly changeable Payroll software industry.
Payroll Terms
Payroll Terms

payroll_termsAutomatic Check Signatures
This feature offered by payroll service providers prints a computer-generated signature on each check. It is particularly useful for larger businesses that have many checks to sign, or in cases where the check signer is frequently out of the office.

Bi-weekly Pay Period
The University's designated biweeklypay period begins at 12:01a.m. on every other Thursday and ends 14 consecutive days later at midnight on Wednesday, with payday being the following Wednesday.


Certified Payroll Professional (C.P.P.)
This is a certification given by the American Payroll Association upon passing a standardized examination.

Direct Deposit
A popular option of payroll companies that allows payroll funds to be deposited directly into employee bank accounts.

Earnings
Record of wages paid.

EFTPS
The Electronic Federal Tax Payment System (EFTPS) was implemented in October 1996 in accordance with NAFTA (North American Free Trade Agreement) which stipulated that any business that pays more that $200,000 in taxes in any year from 1998 on must pay taxes electronically starting within two years from when they hit the $200,000-in-taxes mark.

Exempt Employee
Classification of employees whose job title and description makes them exempt from provisions of the Fair Labor Standards Act, which means that they are not eligible for overtime.

Exemption
Persons meeting certain criteria may be exempt for taxes, or tax withholding from paycheck.

FICA/FUTA
Taxes paid to the federal government that support Medicare, Social Security, and unemployment funds. While the costs of Medicare and Social Security are shared equally between the employee and the company, FUTA taxes are borne by the company alone.

Government requirements
Year-end tax slips, reports and summaries can be a pain in the IRS to prepare manually. So ensure your payroll application or service can handle them.

Gross Pay
The total amount of pay prior to taxes or other deductions.


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