| Contingent liability | Obligation to make a future payment if, and only if, an uncertain future event occurs.
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| Current liabilities | Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer.
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| 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.
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| Deferred income tax liability | Corporation income taxes that are deferred until future years because of temporary differences between GAAP and tax rules.
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| Employee benefits | Additional compensation paid to or on behalf of employees, such as premiums for medical, dental, life, and disability insurance, and contributions to pension plans.
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| Employee earnings report | Record of an employee's net pay, gross pay, deductions, and year-to-date payroll information.
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| Estimated liability | Obligation of an uncertain amount that can be reasonably estimated.
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| Federal depository bank | Bank authorized to accept deposits of amounts payable to the federal government.
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| Federal Insurance Contributions Act (FICA) Taxes | Taxes assessed on both employers and employees; for Social Security and Medicare programs.
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| Federal Unemployment Taxes (FUTA) | Payroll taxes on employers assessed by the federal government to support its unemployment insurance program.
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| Form 940 | IRS form used to report an employer's federal unemployment taxes (FUTA) on an annual filing basis.
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| Form 941 | IRS form filed to report FICA taxes owed and remitted.
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| 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.
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| Form W-4 | Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed.
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| Gross pay | Total compensation earned by an employee.
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| Known liabilities | Obligations of a company with little uncertainty; set by agreements, contracts, or laws; also called definitely determinable liabilities.
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| Long-term liabilities | Obligations not due to be paid within one year or the operating cycle, whichever is longer.
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| Merit rating | Rating assigned to an employer by a state based on the employer's record of employment.
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| Net pay | Gross pay less all deductions; also called take-home pay.
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| 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.
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| Payroll deductions | Amounts withheld from an employee's gross pay; also called withholdings.
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| Payroll register | Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.
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| Short-term note payable | Current obligation in the form of a written promissory note.
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| State Unemployment Taxes (SUTA) | State payroll taxes on employers to support its unemployment programs.
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| 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.
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| Wage bracket withholding table | Table of the amounts of income tax withheld from employees' wages.
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| Warranty | Agreement that obligates the seller to correct or replace a product or service when it fails to perform properly within a specified period.
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