Payroll Glossary and Calculations | Salaris Payroll Help Center

This glossary defines the most frequently used payroll terms in Salaris. It’s designed to help you interpret your paystubs, payroll settings, and reports with confidence.

Term	Definition
941	IRS Form 941, filed quarterly by employers to report wages paid, federal income tax withheld, and Social Security and Medicare taxes.
Approval deadline	The latest date and time a payroll can be approved to ensure employees are paid on the scheduled payday.
Base pay (Basis)	The payment structure for an employee’s regular earnings, such as hourly or salary.
Benefit contributions	Employer and employee amounts set aside for benefits like health insurance or retirement plans. May include pre-tax deductions.
Cash Requirements	The cash requirement for a payroll is the amount of funds that will be debited to process that payroll. The cash requirement includes: Total net pay amounts for employee payroll items, which are paid via direct deposit Total payment amounts for contractor payments, which are paid via direct deposit Total amounts of employee taxes and employer taxes which Salaris remits on the employer's behalf Total amounts for child-support post-tax deductions, which Salaris remits on the employer’s behalf Note: If a payment method for an item = cash (like cash tips) the value of the item will not be included. Net pay for employees who are not using direct deposit, i.e, payment method = manual, is excluded. (Taxes for these employees are included.)
Child support	Court-ordered deductions from an employee’s pay used to support a dependent child.
Company	The employer’s registered business entity in Salaris. Company details appear on employee paystubs.
Correction	A payroll adjustment made to fix an error in a previously processed pay period (for example, an overpayment).
DBA (Doing Business As)	A trade name used by a business that differs from its legal entity name.
Direct deposit	An electronic transfer of wages from the employer’s bank account directly to the employee’s bank account.
Disposable income	Employee earnings after required deductions (used to determine garnishment limits).
Earnings	Total compensation before deductions. May include regular pay, overtime, bonuses, or commissions.
Earnings type	The category of pay that describes how the employee earned wages (e.g., hourly, salary, overtime, bonus).
EIN	Employer Identification Number assigned by the IRS; used for tax filing and reporting.
FICA	Federal Insurance Contributions Act taxes—Social Security and Medicare—withheld from employee wages and matched by employers.
Fringe benefits	Non-wage compensation, such as allowances or non-cash perks, which may be taxable depending on IRS rules.
FUTA (Federal Unemployment Tax Act)	Employer-paid federal unemployment tax based on each employee’s wages, up to an annual wage base limit.
Gross pay	Total amount earned before any deductions or taxes. Includes cash tips where applicable. Gross pay = Regular hourly or salary pay + Overtime pay + Tips + Bonuses/Commissions/Any other earnings
Net pay	The employee’s take-home pay. The amount they receive after all deductions and employee taxes have been withheld. Net pay = Gross Pay - Cash tips - EE taxes
Pay period	The range of dates during which an employee’s work hours or salary are calculated for payment.
Payday	The date wages are issued for a specific pay period.
Payroll	A record of all pay items, taxes, deductions, and payments processed for employees in a pay run.
Post-tax deductions	Amounts withheld from pay after taxes, such as union dues, wage garnishments, or loan repayments.
Pre-tax deductions	Amounts withheld before taxes are calculated, reducing taxable income (e.g., health insurance premiums, retirement contributions).
Reimbursement	Payment to an employee for approved business expenses (usually non-taxable).
Social Security	Federal payroll tax collected under FICA to fund retirement and disability benefits.
State unemployment (SUI)	Employer-paid state tax that funds unemployment benefits for eligible workers. Rates and wage limits vary by state.
Taxable wages	The portion of an employee’s earnings subject to specific taxes after pre-tax deductions are applied.
Tips	"Payroll tips” refers to any tips that are processed and paid through the payroll system. This typically includes credit card tips (when run through Salaris payroll) and any reported cash tips that are incorporated for tax withholding. tip article.
Wage base limit	The maximum amount of wages subject to a particular tax in a given year. Once reached, no additional tax is withheld for that type.
Withholding	The process of deducting taxes from employee pay and sending them to the correct government agency.
YTD (Year-to-Date)	The cumulative total of earnings, deductions, or taxes from the beginning of the calendar year through the current pay period.

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