Vision Payroll

May 6, 2008

SUTA

Filed under: Glossary — Vision @ 3:16 pm

State unemployment tax. Sometimes known as SUI. This tax is usually paid exclusively by the employer. Most for profit companies are subject to this tax whose amounts vary greatly from state to state.

State withholding

Filed under: Glossary — Vision @ 3:04 pm

Sometimes abbreviated SWT. The tax taken from the employee with each payrun that contributes to the employee’s payment of state income tax, if applicable. The amount is determined by the individual state and by the employee’s choice of marital and dependent status on their state withholding form. For more information, please see the links section on this page for the state in question.

Prenote

Filed under: Glossary — Vision @ 2:49 pm

The dry run through the bank for an employee’s direct deposit to ensure security and accuracy. The prenote period lasts 10 business days.

Premium only plan

Filed under: Glossary — Vision @ 2:49 pm

A plan that allows employees to purchase their health insurance before tax. This plan results in significant savings for the employee and employer.

Medicare

Filed under: Glossary — Vision @ 2:49 pm

The tax that funds Medicare. Almost all employees are subject to Medicare which currently has a tax rate of 1.45% on all eligible wages. The employer must match the tax in all cases.

Medical reimbursement plan

Filed under: Glossary — Vision @ 2:48 pm

A plan in which employees can put away money, before tax, to use later in buying medical products that are not covered under the employers health plan. This plan results in tax deductions for the employee and employer and allows for savings for medical products.

FUTA

Filed under: Glossary — Vision @ 2:48 pm

Federal unemployment tax. Sometimes known as FUI. This tax is paid exclusively by the employer. Most for profit companies are subject to this tax which currently is .8% of the employee’s first eligible $7000.

Federal withholding

Filed under: Glossary — Vision @ 2:48 pm

Sometimes abbreviated FWT. The tax taken from the employee with each payrun that contributes to the employee’s payment of federal income tax. The amount is determined by the IRS and by the employee’s choice of marital and dependent status on their Form W-4.

FICA

Filed under: Glossary — Vision @ 2:47 pm

The tax that funds the Social Security Administration. Almost all employees are subject to FICA which currently has a tax rate of 6.2% on the first $102,000 of eligible wages. The employer must match the tax in all cases.

Direct deposit

Filed under: Glossary — Vision @ 2:47 pm

The automatic deposit of an employee’s check into a bank account or onto a paycheck debit card of their choice.

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