Ch 10 - Payroll Comps, Recs and Pay VOCAB Flashcards Preview

Principles of Accounting > Ch 10 - Payroll Comps, Recs and Pay VOCAB > Flashcards

Flashcards in Ch 10 - Payroll Comps, Recs and Pay VOCAB Deck (19):
1

Define commission basis.

method of paying employees according to a percentage of net sales

2

Define compensation record (individual earnings record)

an employee record that contains information needed to compute earnings and complete tax reports

3

Define employee

person who is hired by and works under the control and direction of the employer

4

Define Employee's Withholding Allowance Certificate (W-4)

a form used to claim withhoding/exemption allowances

5

Define exempt employees.

salaried employees who hold supervisory or managerial positions who are not subject to max hour and overtime pay provisions of the Wage and Hour Law

6

Define federal unemployment taxes.

taxes levied by federal government against employers to benefit unemployed workers

7

Define hourly rate basis

method of paying employees according to a stated rate per hour

8

Define independent contractor.

one who is paid by a company to carry out a specific task or job, but is not under the direct supervision or control of the company

9

Define Medicare tax.

a tax levied on employees and employers to provide medical care for the employee and the employee's spouse after each has reached age 65

10

Define payroll register.

record of payroll information for each employee for the pay period.

11

Define Piece-rate basis.

method of paying employees according to the number of units produced

12

Define salary basis

method of paying employees according to an agreed-upon amount for each week or month

13

Define Social Security Act

federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act

14

Define social security (FICA) tax

tax imposed by Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability beneifts

15

Define state unemployment taxes.

taxes levied by a state govt against employers to benefit unemployed workers

16

Define tax-exempt wages

earning in excess of the base amount set by the Social Security Act

17

Describe time and a half

rate of pay for an employee's work in excess of 40 hours a week

18

Define wage-bracket table method

simple method to determine the amount of federal income tax to be withheld using a table provided by the govt

19

Define workers' compensation insurance

insurance that protects employees against losses from job-related injuries or illnesses, or compensates their families if death occurs in the course of the employment