Business operations glossary

An IRS number used to identify a business for federal tax purposes. It is not a business license.

Official source: IRS · Checked: 2026-11-01

Employees give this form to the employer to set federal income-tax withholding. It does not determine their final annual tax bill.

Official source: IRS · Checked: 2026-11-01

The employer reports an employee’s annual wages and withheld taxes on this form. Calling a person a W-2 worker does not replace the legal worker-classification test.

Official source: IRS · Checked: 2026-11-01

A US payee supplies its tax name and taxpayer ID so the payer can prepare required tax reporting. It is not proof that a worker is an independent contractor.

Official source: IRS · Checked: 2026-11-01

This information return reports certain payments for services to nonemployees. A reporting threshold is not a tax-free allowance for the person paid.

Official source: IRS · Checked: 2026-11-01

Federal payroll taxes supporting Social Security and Medicare. Their wage bases can differ from federal income-tax withholding wages.

Official source: IRS · Checked: 2026-11-01

A federal unemployment tax paid by the employer. It is separate from state unemployment taxes and is not an employee payroll deduction.

Official source: IRS · Checked: 2026-11-01

A state unemployment-insurance tax program. Employer rates, wage limits and any employee contribution depend on the state and employer.

Official source: IRS · Checked: 2026-11-01

A Social Security Administration identification number used for earnings records and other purposes. An SSN by itself does not establish employment authorization.

Official source: Social Security Administration · Checked: 2026-11-01

An IRS tax-processing number for certain people who cannot obtain an SSN. It does not authorize work and does not replace an SSN on employee wage reporting.

Official source: IRS · Checked: 2026-11-01

A US Treasury service for electronic federal tax payments. Making a deposit does not also file the related tax return.

Official source: IRS · Checked: 2026-11-01

Most employers use this quarterly return to report federal income-tax withholding and Social Security and Medicare taxes. Deposit dates follow separate rules.

Official source: IRS · Checked: 2026-11-01

The form used to correct certain errors on an earlier Form 941. It is different from changing the next payroll spreadsheet.

Official source: IRS · Checked: 2026-11-01

The employer’s annual FUTA tax return. Its filing schedule does not mean every required tax deposit is annual.

Official source: IRS · Checked: 2026-11-01

The Fair Labor Standards Act sets federal rules for minimum wages, overtime, records and youth employment. State or local rules may provide greater protections.

Official source: US Department of Labor · Checked: 2026-11-01

A covered employee who is not exempt from the applicable overtime requirement. Paying a salary does not automatically make the employee exempt.

Official source: US Department of Labor · Checked: 2026-11-01

An exemption from a specified wage-and-hour rule, available only when its legal tests are met. Here it means overtime classification, not exemption from income tax.

Official source: US Department of Labor · Checked: 2026-11-01

The legally defined rate used in overtime calculations. It can include certain bonuses or other pay, so it is not always the listed hourly rate.

Official source: US Department of Labor · Checked: 2026-11-01

Additional pay owed when a covered nonexempt employee crosses the applicable overtime threshold. Daily and weekly triggers can differ by jurisdiction.

Official source: US Department of Labor · Checked: 2026-11-01

An employer’s paid-time-off arrangement, often combining vacation and other leave. A PTO policy still has to satisfy any applicable state or local leave requirements.

Official source: US Department of Labor · Checked: 2026-11-01

A federal law giving eligible people a temporary option to continue certain group health coverage after qualifying events. It does not apply to every employer or every loss of coverage.

Official source: US Department of Labor · Checked: 2026-11-01

A federal law providing qualifying eligible employees with unpaid, job-protected leave through covered employers. Paid benefits or broader state leave are separate questions.

Official source: US Department of Labor · Checked: 2026-11-01

The Affordable Care Act includes health-coverage, employer and reporting rules. Which employer requirements apply depends on the relevant legal tests.

Official source: IRS · Checked: 2026-11-01

An individually owned account for qualified medical expenses. Contribution eligibility and limits matter, and not every payroll deduction receives the same federal or state tax treatment.

Official source: IRS · Checked: 2026-11-01

An employer flexible spending arrangement. Health and dependent-care FSAs pay different eligible expenses and have different rules; unused amounts follow the relevant plan’s permitted rules.

Official source: IRS · Checked: 2026-11-01

A health plan meeting specified high-deductible and other legal requirements. Do not assume that any plan with a large deductible automatically qualifies for HSA contributions.

Official source: IRS · Checked: 2026-11-01

An employer-funded arrangement reimbursing eligible medical expenses under its rules. It is not an employee-owned savings account or an insurance policy by itself.

Official source: IRS · Checked: 2026-11-01

A type of employer HRA linked to qualifying individual health coverage or Medicare. Its offer, eligibility and premium-tax-credit rules need to be reviewed together.

Official source: HealthCare.gov · Checked: 2026-11-01

An HRA available to qualifying small employers under specific rules and limits. It is different from an ICHRA and can affect Marketplace premium tax credits.

Official source: HealthCare.gov · Checked: 2026-11-01

An employer retirement plan that can allow employee salary deferrals and employer contributions. Offering a plan, employee eligibility and an employee’s election are separate decisions.

Official source: IRS · Checked: 2026-11-01

An employee 401(k) deferral generally excluded from current federal income-tax wages, but not Social Security or Medicare wages. State treatment can differ.

Official source: IRS · Checked: 2026-11-01

An employee 401(k) contribution included in current taxable income. Qualified Roth distributions can receive different tax treatment later; the eligibility rules still matter.

Official source: IRS · Checked: 2026-11-01

A written employer plan permitting eligible choices between cash and certain qualified benefits. A payroll deduction is not automatically pretax just because the employer labels it a benefit.

Official source: IRS · Checked: 2026-11-01

A limited liability company is created under state law. Its legal form does not, by itself, determine how it is taxed federally or remove employer duties.

Official source: IRS · Checked: 2026-11-01

A name a business uses in addition to its legal name, with registration rules set locally or by state. A DBA is not a separate LLC or corporation.

Official source: US Small Business Administration · Checked: 2026-11-01

Employers use Form I-9 to verify a new hire’s identity and authorization to work. The employee chooses acceptable documents; it is not a tax-withholding form.

Official source: USCIS · Checked: 2026-11-01

An employment authorization document, commonly a Form I-766 card, for eligible individuals. Not everyone authorized to work needs an EAD card.

Official source: USCIS · Checked: 2026-11-01

A US arrival/departure record showing admission information and, where applicable, the authorized stay. A visa’s expiration date and an I-94 stay date are different things.

Official source: US Customs and Border Protection · Checked: 2026-11-01

A Department of Labor certification process used in many employer-sponsored permanent-residence cases. A certified PERM application is not itself a green card or work permit.

Official source: US Department of Labor · Checked: 2026-11-01

A temporary immigration category commonly used for qualifying specialty-occupation employment. A job title or degree alone does not establish eligibility, and work authorization can be employer-specific.

Official source: USCIS · Checked: 2026-11-01

A temporary category for certain transfers between qualifying related businesses. The company relationship, prior employment and proposed work all matter.

Official source: USCIS · Checked: 2026-11-01

An employment-based permanent-residence category for certain advanced-degree professionals or people with exceptional ability. A qualifying degree alone is not approval of an immigration case.

Official source: USCIS · Checked: 2026-11-01

A Department of Labor application with wage and working-condition attestations for certain temporary-worker programs. It is different from PERM and does not itself approve a visa.

Official source: US Department of Labor · Checked: 2026-11-01

Software that organizes employee records such as job, contact and pay information. The label alone does not tell you which payroll or recruiting features are included.

Official source: Workday · Checked: 2026-11-01

Human capital management can cover employee records, compensation, talent and workforce planning. Vendors use HCM and HRIS labels differently, so compare actual modules.

Official source: Workday · Checked: 2026-11-01

Software for managing applications and hiring stages. It is not the same as a job board that brings applicants to a vacancy.

Official source: Workday · Checked: 2026-11-01