Reference
Payroll and paycheck glossary
Plain-English definitions of the 32 terms used across this site, each linked to an authoritative source and to the guides that explain it in context.
401(k)
An employer retirement plan. Traditional contributions reduce taxable wages for income tax but not for Social Security and Medicare; Roth contributions reduce neither.
Covered in: What Is MED EE on My Paycheck? Fed MED/EE Medicare Tax Explained What Is a W-2 Form? A Complete Guide for Employees
Backup withholding
Withholding a payer must apply, often because a taxpayer identification number is missing or incorrect. It can trigger a filing requirement regardless of the payment amount.
Covered in: What Is Form 1099-NEC? 2026 Instructions and Filing Guide What Is Form 1099-MISC? A Complete Guide for 2026
California Franchise Tax Board
California's tax agency, whose residency and sourcing publications decide what a former resident still owes the state.
Covered in: California State Income Tax: Brackets and Paycheck Withholding California's "Exit Tax" Explained: What Actually Happens When You Move
Child Tax Credit
A per-child federal credit that reduces income tax, with a partially refundable portion delivered through the Additional Child Tax Credit.
Covered in: How Much Is the Child Tax Credit? 2025-2026 Guide
Direct deposit
Electronic payment of wages or a tax refund straight into a bank account identified by its routing and account numbers.
Covered in: Does Veterans Day Affect Direct Deposit? Payday Guide How Do I Change My Direct Deposit Information With the IRS? Best Cheap Payroll Services for Small Businesses in 2026
Employer Identification Number (EIN)
The federal tax identification number a business needs before it can run payroll and file employment tax returns.
Estimated tax
Quarterly payments that take the place of payroll withholding for income that has no tax withheld, such as contractor earnings.
FICA taxes
Social Security and Medicare taxes collected under the Federal Insurance Contributions Act. Unlike income tax, the rates are fixed and a Form W-4 cannot change them.
Covered in: What Is Fed MWT EE on My Paycheck? The 1.45% Check California State Income Tax: Brackets and Paycheck Withholding Paystub Abbreviations Explained: A Complete 2026 Guide
Form 1040-X
The amended individual income tax return, used to correct a return that has already been filed, for example when a W-2 was left out.
Covered in: How to Get Your W-2 from a Previous Employer: Full Guide What Happens If You Don't File a W-2? What Happens If I Only File 1 W-2 Form?
Form 1099-K
The return a payment settlement entity files for card and third-party network transactions, which is why those payments are not reported on a 1099-NEC by the payer.
Form 1099-MISC
The information return for miscellaneous payments such as rent, royalties, prizes, medical payments and gross proceeds paid to an attorney.
Covered in: What Is Form 1099-MISC? A Complete Guide for 2026
Form 1099-NEC
The information return used to report nonemployee compensation paid for services in the course of a trade or business.
Covered in: What Is Form 1099-NEC? 2026 Instructions and Filing Guide What Is Form 1099-MISC? A Complete Guide for 2026 1099 Pay Stub for Contractors: What It Is and What Records You Need
Form 4852
The substitute for Form W-2, available in qualifying situations when an employer does not provide a W-2 or provides an incorrect one.
Covered in: How to Get Your W-2 from a Previous Employer: Full Guide What Happens If You Don't File a W-2? What Happens If I Only File 1 W-2 Form?
Form 941
The quarterly federal return on which an employer reports withheld income tax and both shares of Social Security and Medicare tax.
Form W-2
The annual Wage and Tax Statement an employer furnishes to each employee and files with the Social Security Administration, reporting wages and taxes withheld.
Covered in: What Is Medical ER on Your Paystub? Employer Health Cost Explained What Does FTD Mean on a Paystub? Fiscal Year to Date vs Federal Tax Deposit What Is MED EE on My Paycheck? Fed MED/EE Medicare Tax Explained
Form W-4
The Employee's Withholding Certificate. Its entries tell payroll how much federal income tax to withhold from each paycheck.
Covered in: What Is SIT on Your Paystub? State Income Tax Explained Georgia State Income Tax: Flat Rate, Deductions and Withholding Florida State Income Tax: 0% Rate and What Your Paycheck Still Pays
Form W-9
The form a business collects from a contractor or vendor to obtain the legal name and taxpayer identification number needed for information reporting.
Covered in: What Is Form 1099-NEC? 2026 Instructions and Filing Guide
Gross pay
Everything earned in a pay period before taxes and deductions are removed. It is the figure every withholding calculation starts from.
Covered in: EE vs ER on Your Paystub: What Employee and Employer Lines Mean What Is Proof of Income for an Apartment? Documents Landlords Accept What Is a W-2 Form? A Complete Guide for Employees
Independent contractor
A worker whose relationship with the payer fails the employee control tests, and who therefore manages their own taxes and business records.
Covered in: What Is a W-2 Form? A Complete Guide for Employees What Is Form 1099-NEC? 2026 Instructions and Filing Guide What Is Form 1099-MISC? A Complete Guide for 2026
Internal Revenue Service (IRS)
The federal agency that administers the tax code, publishes the withholding tables and receives the information returns employers file.
Covered in: What Does FTD Mean on a Paystub? Fiscal Year to Date vs Federal Tax Deposit What Is GTL on Your Paystub? Group Term Life and Imputed Income What Is SIT on Your Paystub? State Income Tax Explained
Medicare tax
The 1.45% employee share of Medicare tax, applied to all covered wages with no cap, plus an additional 0.9% on wages above the statutory threshold.
Covered in: What Is MED EE on My Paycheck? Fed MED/EE Medicare Tax Explained What Is Fed MWT EE on My Paycheck? The 1.45% Check What Is GTL on Your Paystub? Group Term Life and Imputed Income
Net pay
What remains after taxes and deductions are subtracted from gross pay, and the amount actually paid to the employee.
Covered in: EE vs ER on Your Paystub: What Employee and Employer Lines Mean What Is GTL on Your Paystub? Group Term Life and Imputed Income Gross Monthly Income: What It Is and How to Calculate It
Nonemployee compensation
Payments for services performed by someone who is not an employee, reported in Box 1a of Form 1099-NEC once the year's threshold is met.
Covered in: What Is Form 1099-NEC? 2026 Instructions and Filing Guide What Is Form 1099-MISC? A Complete Guide for 2026 1099 Pay Stub for Contractors: What It Is and What Records You Need
Overtime
Hours worked beyond the federal weekly threshold, paid at a premium rate. Several states add their own daily or weekly rules.
Covered in: Gross Monthly Income: What It Is and How to Calculate It How to Access and Manage Your Harris Teeter Pay Stub What Does a Pay Stub Look Like and What Information Does It Include?
Pay period
The span of work dates a payment covers, which is not the same as the pay date on which the money is actually issued.
Covered in: What Is Medical ER on Your Paystub? Employer Health Cost Explained Arizona State Income Tax: 2.5% Flat Rate and A-4 Withholding How to Access and Download Your Empeon ESS Hub Pay Stub
Pay stub
The payroll statement that accompanies a payment and explains how it was calculated: pay period, earnings, taxes, deductions, net pay and year-to-date totals.
Covered in: EE vs ER on Your Paystub: What Employee and Employer Lines Mean What Is SDI on Your Paystub? State Disability Insurance Explained What Is Medical ER on Your Paystub? Employer Health Cost Explained
Payroll
The process of calculating employee pay, withholding and depositing taxes, issuing payments and keeping the wage records that support year-end reporting.
Covered in: EE vs ER on Your Paystub: What Employee and Employer Lines Mean What Does a Pay Stub Look Like and What Information Does It Include? Best Cheap Payroll Services for Small Businesses in 2026
Payroll card
A prepaid card an employer loads with wages. It cannot be made the only way an employee receives pay, and it carries Regulation E protections.
Covered in: What Is a Payroll Card and How Does It Work?
Self-employment tax
The Social Security and Medicare tax paid by the self-employed, covering both the employee and employer shares on net earnings.
Covered in: What Is MED EE on My Paycheck? Fed MED/EE Medicare Tax Explained
Tax withholding
Income tax an employer deducts from wages and remits on the employee's behalf. It is an estimate of the annual bill, not the bill itself.
Covered in: EE vs ER on Your Paystub: What Employee and Employer Lines Mean What Is MED EE on My Paycheck? Fed MED/EE Medicare Tax Explained What Is Fed MWT EE on My Paycheck? The 1.45% Check
Year-to-date (YTD)
The running total of a payroll figure from the start of the calendar year through the current pay period. YTD totals are what year-end forms are built from.
Covered in: What Does FTD Mean on a Paystub? Fiscal Year to Date vs Federal Tax Deposit What Is SIT on Your Paystub? State Income Tax Explained What Is Proof of Income for an Apartment? Documents Landlords Accept
Social Security tax
The 6.2% employee share of Social Security tax, applied to wages up to the annual wage base, with the employer paying a matching share.
Covered in: What Is Fed MWT EE on My Paycheck? The 1.45% Check Florida State Income Tax: 0% Rate and What Your Paycheck Still Pays What Is a W-2 Form? A Complete Guide for Employees
Reference: ssa.gov