Payroll Vocabulary Explained

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

Disparate effect

What Is Disparate Effect? Disparate effect, also called disparate impact or adverse impact, occurs when a seemingly neutral workplace rule or practice ends up disproportionately disadvantaging a protected group. Even

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Disengaged employee

Disengaged Employee, What It Means A disengaged employee is someone who lacks enthusiasm and commitment toward their role. While they may meet the basic expectations of their job, they typically

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Discretionary bonus

What Is a Discretionary Bonus? A discretionary bonus is a one-time payment an employer gives to an employee as a reward, without prior agreement or expectation. These bonuses are not

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Deduction

What Are Deductions? Deductions refer to amounts taken out of an employee’s paycheck, usually to cover specific expenses or benefits. Unlike tax withholdings, which are legally required, deductions are often

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