Annual wage
What Does “Annual Wage” Mean? Definition of Annual WageAn annual wage refers to the total amount of money an employee is expected to earn over the course of a year. This figure typically reflects a fixed salary and is calculated before any taxes or deductions, also known as the gross annual income. Understanding Annual Wages […]
After-tax deductions
What Are Post-Tax Deductions? (aka after-tax deductions) Definition of Post-Tax DeductionsPost-tax deductions, also known as after-tax deductions, refer to the amounts subtracted from an employee’s paycheck after taxes and any applicable pre-tax deductions have already been withheld. These deductions may be optional, like Roth 401(k) contributions, or mandatory, such as garnishments ordered by a court. […]
Audit trail
What Is an Audit Trail? Definition of an Audit TrailAn audit trail is a detailed record that documents the flow of financial transactions or data entries from their origin to their final posting in a financial system. It provides a clear path that shows how numbers or records were derived, allowing them to be verified […]
Accrual
What Does Accrual Mean? Accrual – ExplainedAn accrual refers to money that is either earned or owed but hasn’t yet been received or paid. In accounting, accruals are used to recognize revenues and expenses at the moment they’re incurred, not when the cash actually changes hands. This means businesses can record transactions when they happen, […]