contingent liabilitiesEvents that may or may not give rise to an actual liability because the outcome is uncertain; examples include lawsuits, environmental damage issues, and so forth
defined benefit planA type of pension plan where the benefits are a function of years of service, pay, and age; the ultimate employer cost is not known in advance
defined contribution planA type of pension plan where the benefits are based on amounts in trust for the benefit of the employee; employer contributions are usually a fixed percentage of pay
employeeA person who works for a specific business and whose activities are directed by that business
FICAFederal Insurance Contributions Act (also known as social security and Medicare); establishes a tax that employers must withhold and match for government-based retiree benefit
Form 1099A form required to be issued to an independent contractor reporting amounts paid; to assist with tax compliance issues (this form used to report other payments like interest, etc.)
FUTAFederal Unemployment Tax levied on employer to provide funds for unemployed workers; rate is dependent on existence of SUTA and employer history of layoffs, etc.
gross payAlso known as gross earnings; this it is the total amount earned by an employee before any deductions
income taxesTaxes that are based on the amount income; for employees such amounts must be withheld by employers and remitted to the government
independent contractorOne who performs a designated task or service for a company, and the company has the right to control or direct only the result of the work done
net payAlso known as net earnings; this is the gross pay less all applicable deductions ("take home pay")
notes payableFormal short-term borrowings usually evidenced by a specific written promise to pay
pension planA general term to describe some form of arrangement for continuing payments to retirees
SUTAState Unemployment Tax levied on employer to provide funds for unemployed workers; rate is adjusted for employer history of layoffs, etc.
W-2An annual statement provided to employees stating the amount of earnings and withholdings; assists employee in preparing their own tax returns
A form filled out by an employee stating the amount of exemptions to which they are entitled for tax purposes; such exemptions bear on the amount of income tax withholdings
warranty liabilityA liability that is recorded for the future costs of claims that are anticipated because of product warranty agreements
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