Knowing Your Payroll Terms
If you are a noob when it comes to preparing payroll, there are several terms that you need to get familiar with. Knowing what these terms mean could help you better understand how the payroll process goes.
One of the most common terms that you would come across is “pay period”. This refers to the days included in your payroll computation. A pay period could be monthly or bi-weekly. With the latter, the employees are able to receive their salaries and wages after 15 days. On the other hand, a monthly pay period refers to a pay cycle running from the first day of the month to the 30th or 31st day of the same month.
When one says “gross income,” this refers to the income before any deduction has been made. On the other hand, a “net income” is what the employee gets after taxes and other deductions have been made. Your gross income, net income and tax payments are reflected in your W-2 form. This form should be submitted to the IRS annually and should reflect only those wages that you have already earned for the year.
You would also need to familiarize yourself with the different employee benefits Las Vegas may have. This includes health insurance, employer-paid retirement, life insurance, disability insurance, deferred compensation, educational assistance, and vacation and sick leave credits, among others. All of these benefits are made available by the city of Las Vegas to regular, full-time employacees as well as to part-time employees.
Other employee benefits Las Vegas have include 11 holidays each year plus one birthday holiday, 125 Flexible Benefits Program, and Employee Assistance Program. The latter is a 24-hur crisis intervention program that employees could undergo. First three visits are free of charge while succeeding ones can be charged to your health insurance.
Other terminologies involved in processing payroll Las Vegas companies have include Pre-tax deduction, payroll deductions that are do not incur any tax levies; withholding allowance, the number of exemptions you can claim under W-4 or DE-4 in calculating tax deduction; Employer Identification Number, the IRS identification code for an employer; and FICA, the social security tax withheld form an employee’s paycheck.