Contingent liability
Obligation to make a future payment if, and only if, an uncertain future event occurs.
Current liabilities
Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer.
Current portion of long-term debt
Portion of long-term debt due within one year or the operating cycle, whichever is longer, Reported under current Liabilities.
Deferred income tax liability
Corporation income taxes that are deferred until future years because of temporary differences between GAAP and tax rules
Employee benefits
Additional compensation paid to on on behalf of employees, such as premiums for medical, dental, life, and disability insurance, and contributions to pension plans
Employee earnings report
Record of an employee's net pay, gross pay, deductions, and year to date payroll information
Estimated liability
Obligation of an uncertain amount that can be reasonably gauged..
Federal depository bank
Bank authorized to accept deposits of amounts payable to the federal government
FICA (Federal Insurance Contributions Act) Taxes
Taxes assessed on both employers and employees. For Social Security and Medicare programs.
Form 940
IRS form used to report an employer's federal unemployment taxes on an annual filing basis
Form 941
IRS form filed to report FICA taxes owed and remained
Form W-2
Annual report by an employer to each employee showing the employee's wages subject to FICA and federal income taxes along with amounts withheld
Form W-4
Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed
FUTA (Federal Unemployment Tax)
Payroll taxes on employers assessed by the federal government to support its unemployment insurance program
Gross pay
Total compensation earned by an employee
Known liabilities
Obligations of a company with little uncertainty. Set by agreements, contracts, or laws.
Long-term liabilities
Obligations not due to be paid within one year or the operating cycle, whichever is longer.
Merit rating
Rating assigned to an employer by a state based on the employer's record of employment
Net pay
Gross pay less all deductions. Also called Take-home pay.
Payroll bank account
Bank account used solely for paying employees. Each pay period an amount equal to the total employees' net pay is deposited in it and the payroll checks are drawn on it.
Payroll deductions
Amounts withheld from an employees' gross pay.
Payroll register
Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions
Short-term note payable
A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
SUTA (State Unemployment Taxes)
State payroll taxes on employers to support its unemployment programs
Times interest earned
Ratio of income before interest expense (and any income taxes) divided by interest expense. Reflects risk of covering interest commitments when income varies
Wage bracket withholding table
Table of the amounts of income tax withheld from employees' wages
Warranty
Agreement that obligates the seller to correct or replace a product or service when it fails to perform properly within a specified period