Every payroll term, tax code, and paystub abbreviation explained in plain English.
Federal Insurance Contributions Act — the Social Security and Medicare tax on your paycheck.
The 6.2% payroll tax that funds federal retirement and disability benefits (OASDI).
The 1.45% payroll tax that funds federal healthcare for seniors and disabled persons.
Tax withheld from your paycheck based on your W-4 elections and IRS tax brackets.
Income tax levied by your state of residence, ranging from 0% to 13.3% depending on the state.
City or county income tax levied in some jurisdictions (e.g., NYC, Philadelphia, Detroit).
The combined 15.3% Social Security and Medicare tax paid by self-employed individuals.
A 0.9% surtax on wages exceeding $200,000 (single) for high earners.
Your total earnings before any deductions — the "big number" on your paystub.
The amount you actually receive after all deductions — what hits your bank account.
The amount you earn per hour of work. The federal minimum is $7.25/hr.
Pay at 1.5x your regular rate for hours worked beyond 40 per week (FLSA requirement).
A fixed annual compensation divided equally across pay periods, regardless of hours worked.
Running total of earnings and deductions from January 1st through the current pay period.
Earnings based on a percentage of sales you generate, common in sales roles.
A one-time or periodic additional payment, often taxed at a flat 22% federal supplemental rate.
Pre-tax retirement savings deducted from your paycheck, reducing your taxable income.
Your share of the monthly health insurance cost, usually deducted pre-tax.
A triple-tax-advantaged savings account for medical expenses with a high-deductible health plan.
Pre-tax account for medical or dependent care expenses — use it or lose it.
Court-ordered deduction from your paycheck to pay debts like child support, student loans, or tax liens.
The recurring time frame for which employees are paid (weekly, biweekly, semi-monthly, monthly).
The date you actually receive your paycheck, usually 3-7 days after the pay period ends.
Electronic transfer of your paycheck directly into your bank account.
A salaried worker not eligible for overtime pay under FLSA (must meet salary and duties tests).
A worker who IS eligible for overtime pay (time-and-a-half over 40 hours/week).
The IRS form you fill out when hired to tell your employer how much federal tax to withhold.
Annual tax statement from your employer showing total wages and taxes withheld for the year.
Tax form reporting non-employee compensation of $600+ paid to independent contractors.
Employment eligibility verification form required for all US hires within 3 days of start.
The amount your employer contributes to your 401(k) matching your own contributions — free money.
Bank of days off that combines vacation, sick, and personal time into one bucket.
Law allowing you to keep your employer health insurance for 18 months after leaving (at full cost).
The federal law that establishes minimum wage, overtime pay, and child labor standards.
The lowest hourly rate an employer can legally pay — $7.25 federal, but higher in most states.
A 9-digit number the IRS assigns to businesses for tax identification — like an SSN for companies.
State-mandated insurance for short-term disabilities — applies in CA, NY, NJ, RI, and HI.
Employer-paid tax that funds state unemployment benefits — does NOT appear as an employee deduction.
A 6.0% federal tax on the first $7,000 of wages per employee — paid entirely by the employer.
A deduction taken from your paycheck BEFORE taxes are calculated, reducing your taxable income.
A deduction taken AFTER taxes — like Roth 401(k) contributions, union dues, or garnishments.
The taxable value of non-cash benefits your employer provides (e.g., group life insurance over $50K).
A daily allowance for travel expenses (lodging, meals) — usually NOT taxable if within GSA rates.
Extra pay (usually $1-$5/hr more) for working undesirable shifts like nights, weekends, or holidays.