AJAX progress indicator
  • accounts payable
    Amounts due to suppliers relating to the purchase of goods and services on credit
  • compensated absences
    Term to describe paid time off; vacations, sick leave, etc.
  • contingent liabilities
    Events 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 plan
    A 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 plan
    A 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
  • employee
    A person who works for a specific business and whose activities are directed by that business
  • FICA
    Federal 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 1099
    A 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.)
  • FUTA
    Federal 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 pay
    Also known as gross earnings; this it is the total amount earned by an employee before any deductions
  • income taxes
    Taxes that are based on the amount income; for employees such amounts must be withheld by employers and remitted to the government
  • independent contractor
    One 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 pay
    Also known as net earnings; this is the gross pay less all applicable deductions ("take home pay")
  • notes payable
    Formal short-term borrowings usually evidenced by a specific written promise to pay
  • pension plan
    A general term to describe some form of arrangement for continuing payments to retirees
  • SUTA
    State Unemployment Tax levied on employer to provide funds for unemployed workers; rate is adjusted for employer history of layoffs, etc.
  • W-2
    An annual statement provided to employees stating the amount of earnings and withholdings; assists employee in preparing their own tax returns
  • W-4
    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 liability
    A liability that is recorded for the future costs of claims that are anticipated because of product warranty agreements
  • workers compensation insurance
    Insurance paid by the employer to cover work related injuries sustained by employees