Do You Know Your Payroll Acronyms?

Do you get cryptic notes from the Payroll Department?  If you need help figuring out what they mean, here’s a list to demystify some of the most popular payroll code words.

  • EE - A term of endearment used to refer to the employEE.
  • ER - An equally affectionate moniker applied to the employER.
  • PR - How PayRoll talks about themselves
  • SSN - Social Security Number, without which an ER can have no EEs
  • FLSA - The Fair Labor Standards Act of 1938 established many of the laws that we all still abide by today, like overtime rules and child labor laws.
  • 3PS - Third party sick pay is a disability insurance benefit that provides EEs with partial or full wage benefit payments while on long-term medical leave.  The payments are not made by the ER, but by a third party insurance plan, union plan, or disability play, however the ER may be responsible for reporting the payments as taxable wages.
  • PEO - A Professional Employer Organization is a service provider where certain administrative tasks may be outsourced.
  • FMV - Fair Market Value is the price that something would be worth in the current marketplace.
  • CODA - Cash or Deferred Arrangement 401k Plan
  • COLA - Cost of Living Adjustment or Cost of Living Allowance increases wages to match the rate of inflation.
  • CPI - Consumer Price Index gauges fluctuations in a given market’s average prices for consumer goods and services, and is used to calculate the rate of inflation.

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Payroll Administrator Valerie Phillips , Ajax Turner Co.

I just sat in on the free webinar “how to calculate Federal taxes manually” Optimum offered and it was OUTSTANDING!!!