Payroll Vocabulary Explained

We break down payroll’s complex terms from A to Z for easy understanding.

Nondiscretionary bonus

A nondiscretionary bonus is a form of extra pay that is based on specific, predefined conditions. Unlike discretionary bonuses, these are promised in advance and linked to clear performance metrics

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New hire report

A new hire report is a mandatory submission employers make to their state, notifying them when a new employee (or rehire) joins the workforce. This report typically includes details like

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Net Pay

Net pay refers to the amount of money an employee receives after all required and optional deductions have been taken out of their gross wages. Often called “take-home pay,” it’s

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Negative Net Pay

Negative net pay arises when an employee’s total deductions, such as taxes and other withholdings, exceed their gross earnings for a specific pay period. This means the worker doesn’t earn

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