Payroll & HR Acronyms Cheat Sheet

Hours past 40 in a single FLSA workweek. Federal law sets the minimum at 1.5x your regular rate for every OT hour. Some states raise the bar: California and Alaska also require 1.5x after 8 hours in a single day, regardless of your weekly total.

The running total of your earnings, taxes, or deductions from January 1 through your current pay date. That YTD gross is what ends up on your W-2. If the numbers don't match when your W-2 arrives, payroll made a mistake somewhere — and that's worth fixing before you file.

One leave bank for vacation, sick days, and personal time. You earn it as you work — typically something like 0.0385 hours for every hour clocked, which adds up to about 80 hours (10 days) a year. Take a PTO day and your paycheck doesn't change; you're drawing from the balance instead of working.

The colon-separated format for recording time: 8:30 means eight hours and thirty minutes. The problem is you can't multiply it by a pay rate directly. 8:30 × $20/hr doesn't equal $170 — you need to convert to 8.5 decimal hours first, then multiply.

Electronic payroll transfer to an employee's bank account via the ACH network. No paper check, no trip to the bank. Many banks and payroll platforms release funds up to two days before the official pay date.

The US digital network that processes electronic bank transactions, including payroll direct deposits. ACH transfers settle in 1 to 2 business days, which is why payroll systems kick off transfers on Wednesday or Thursday for a Friday payday.

An approved block of time away from work, paid or unpaid. LOA covers FMLA leave, medical leave, military leave, and personal leave. Those hours show up on timesheets but don't get paid out — they're tracked separately so payroll doesn't accidentally include them.

A payment term meaning the invoice is due at the end of the month following the billing period. EOM-30 pushes that out another 30 days past end of month. If you invoice on January 15 with EOM-30 terms, payment isn't due until March 2.

A contract where the client pays for actual hours worked plus any materials or expenses. Common in consulting and construction where nobody knows upfront exactly how long something will take. Your time logs are your invoice, so keeping them accurate isn't optional.

The FLSA overtime multiplier: time-and-a-half for every hour past 40 in a workweek. Some union contracts or company policies go higher, paying double time (2x) for holidays or for hours past 12 in a single shift.

The 1938 federal law that set the rules employers still follow today: minimum wage, overtime at 1.5x for hours past 40, child labor restrictions, and basic recordkeeping. It also allows time rounding under 29 CFR § 785.48, which is where decimal hour timekeeping gets its legal footing.

The law behind the FICA line on your paycheck. Employers and employees each contribute 6.2% for Social Security and 1.45% for Medicare, totaling 7.65% per side. In 2026, Social Security withholding stops at $184,500 in annual wages; Medicare keeps going with no ceiling.

The federal unemployment tax paid entirely by employers, not employees. It's 6% on the first $7,000 of each worker's wages, which works out to $420 per employee per year at the gross rate. Pay your state unemployment taxes on time and you get a 5.4% credit, dropping your effective rate to 0.6% ($42 per employee).

State unemployment tax, paid by employers (and by employees in a handful of states like Alaska, New Jersey, and Pennsylvania). What you owe isn't a set percentage — it shifts based on your company's claims history. Lay off a lot of people and the rate climbs. Stable workforce and you pay less. Also called SUI.

Same fund as SUTA, different name. States that call it SUI instead of SUTA are doing the same thing: collecting employer contributions to pay unemployment benefits to laid-off workers. Your rate goes up when your company has a lot of claims. Keep people longer and it goes down.

State income tax withheld from employee paychecks. Rates vary a lot: nine states have no income tax at all, while others go above 10%. It's calculated on gross wages after pre-tax deductions like 401(k) contributions and FSA elections.

Federal income tax withheld based on an employee's W-4 elections and IRS tax brackets. Employers deposit it monthly or semi-weekly depending on how much they owe. It's one of the biggest line items on a pay stub and the one most employees ask about first.

A 9-digit IRS tax ID for businesses, formatted XX-XXXXXXX. You need one to hire employees, file payroll taxes, or open a business bank account. It's free to get and takes about 15 minutes on IRS.gov.

The 9-digit identifier issued by the Social Security Administration that follows an employee through their entire working life. It's required for payroll tax filing, W-2s, and FICA tracking. Treat it like a password — it should never appear in unencrypted emails or shared files.

The principle — and the body of federal and state law behind it — that employers can't make job decisions based on race, religion, sex, national origin, age, disability, or genetic information. The EEOC is the agency that enforces it.

The federal agency that investigates workplace discrimination complaints and can sue employers on behalf of workers. If your business has 15 or more employees, you're subject to EEOC jurisdiction. Complaints can take months or years to resolve, which is why most employers take compliance seriously from day one.

The published rulebook for federal regulations. For payroll people, two sections matter most: 29 CFR Part 541 covers who qualifies as exempt from overtime, and 29 CFR § 785.48 sets the rules for when time rounding is legally allowed.

The 2010 health reform law with a specific employer trigger: if you average 50 or more full-time equivalent employees, you're an Applicable Large Employer and must offer minimum essential health coverage or face penalties. FTE count is based on hours worked, so your timekeeping directly affects whether this law applies to you.

The federal law that lets employees keep their employer-sponsored health coverage after losing it, but at their own expense. That usually means paying the full premium the employer was covering, plus a 2% admin fee. It's expensive, but it's there as a bridge between jobs.

The civil rights law that prohibits discrimination against workers with disabilities and requires employers to provide reasonable accommodations. That can mean anything from accessible workspaces to modified schedules, which get logged separately on timesheets.

The federal form you complete for every new hire to verify they're authorized to work in the US. It's due within 3 business days of their start date. You keep it on file for 3 years from the hire date or 1 year after termination, whichever comes later — and ICE can audit it without much notice.

The department (or person, in smaller companies) that handles hiring, onboarding, payroll, benefits, compliance, and terminations. In a 10-person company, HR is often whoever handles the most paperwork. In a 500-person company, it's a team with specialized roles for each of those functions.

Software that keeps all HR data in one place: employee records, payroll, benefits, time tracking, and compliance. Platforms like Workday, BambooHR, and ADP Workforce Now are all HRIS systems. Most connect directly to timekeeping tools so decimal hours flow into payroll automatically.

A broader category than HRIS. HCM platforms cover everything an HRIS does, and then add talent management, learning and development, and workforce analytics on top. Vendors like Workday and SAP SuccessFactors market themselves as HCM suites — though in everyday conversation, HRIS and HCM are used interchangeably.

A company that takes over employer responsibilities for a client's workforce, handling payroll, benefits, workers' comp, and HR compliance under a co-employment arrangement. Small businesses often use PEOs to access Fortune 500-level benefits rates they couldn't afford on their own.

A way to count workforce size that accounts for part-timers. One FTE equals 40 hours per week. Add up all hours worked across your team, divide by 40, and that's your FTE count. It's how the ACA determines whether you're a large employer subject to its coverage mandate.

Federal law giving eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons. "Job-protected" means they get their position back. FMLA leave hours don't count as paid hours, so they get tracked separately on timesheets and excluded from payroll.

A pre-tax benefit account for qualified medical or dependent care expenses. You contribute before taxes, which lowers your taxable gross. The catch: it's use-it-or-lose-it. Unused balances typically expire at year end, though some plans allow a small rollover or a grace period.

A tax-advantaged savings account available only to people enrolled in a High-Deductible Health Plan. Unlike an FSA, HSA money rolls over every year indefinitely. Contributions are tax-deductible, earnings are tax-free, and withdrawals for qualified medical expenses are also tax-free — a rare triple tax break.

A health plan with a higher deductible and lower monthly premium than traditional coverage. You need to be enrolled in one to qualify for an HSA. Generally a better deal for people who are healthy and rarely use medical care; a worse deal for people with ongoing prescriptions or frequent doctor visits.

A workplace retirement savings plan that lets employees contribute pre-tax wages, reducing their taxable income now. Many employers match a percentage of contributions — passing that up is essentially leaving part of your compensation on the table. The money grows tax-deferred until withdrawal.

Software that manages recruiting from job posting to hire: parsing resumes, screening candidates, scheduling interviews, and tracking where everyone is in the pipeline. Once someone gets hired, their data feeds into the HRIS to set up payroll and time tracking.

A number that tells you whether something is working. Payroll and time-tracking KPIs include payroll error rate, on-time processing rate, overtime as a percentage of total hours, and absenteeism. If you're not measuring these, you're guessing.

A one-question employee satisfaction score: "How likely are you to recommend this company as a place to work?" on a 0–10 scale. Scores run from -100 to +100. It's a quick pulse check, and companies with low eNPS tend to see it show up in turnover numbers before long.

The document that defines what you're building, when you'll deliver it, and what it costs. Hourly SOWs spell out the billing rate and usually specify how time should be tracked and reported. If a client disputes your invoice later, the SOW is what decides who's right.

A legal contract that keeps confidential information out of the wrong hands. Freelancers and consultants sign them constantly — usually before getting system access or seeing anything proprietary. Violating one can be expensive, so it's worth reading before you sign.

Payment due 30 calendar days from the invoice date. NET15 and NET60 follow the same logic. For freelancers living project-to-project, a client on NET60 terms means you might finish work in January and not get paid until March. That's a cash flow gap worth negotiating before you start.

In affiliate marketing, the average revenue a link earns per click. It's one of the better signals for deciding which products to feature or where to put a call-to-action. A higher EPC means the product converts well with your audience, which is more useful than commission rate alone.

Ad revenue per 1,000 page views. It's how display ad networks measure your site's earning potential. Premium networks like Mediavine typically pay $20–$40+ RPM for professional business audiences. Payroll and HR topics tend to attract high RPMs because advertisers pay more to reach that demographic.

Profit as a percentage of what you spent. For time-tracking tools, the math is simple: multiply the hours saved per month by your hourly rate, then compare it to the subscription cost. Most paid tools pay for themselves within a month or two if you're billing clients or running payroll regularly.

Software you access through a browser and pay for by subscription, instead of buying a license and installing it locally. Almost every payroll, HR, and time-tracking tool today is SaaS: Clockify, Gusto, Harvest. Updates happen automatically, there's no IT setup, and you can cancel anytime.

Two different things depending on context. In affiliate marketing, it's the commission you earn when someone completes a specific action, like signing up for a trial. In accounting, it's a licensed professional who handles tax, audit, and financial reporting. Both show up in content about payroll tools and freelance finances.

IRS Form 1099-NEC reports payments of $600+ to independent contractors for the 2025 tax year. Contractors track decimal hours for invoicing and pay self-employment tax (15.3%) themselves. The 2025 filing deadline is February 2, 2026 (January 31 shifted to next business day as it falls on a Saturday). Note: for payments made in the 2026 tax year, the reporting threshold rises to $2,000.

The form your employer sends by January 31 each year showing what you earned and what was withheld: federal income tax, state tax, Social Security, and Medicare. You need it to file your taxes. If the numbers don't match your last pay stub's YTD totals, something went wrong in payroll.

The form you fill out on your first day to tell your employer how much federal income tax to withhold. The IRS redesigned it in 2020, replacing the old allowance system with dollar amounts. If you get a big tax bill every spring, revisiting your W-4 is usually the first thing to check.

The form you collect from contractors before paying them. It gets you their legal name, tax ID (SSN or EIN), and how they're classified for tax purposes. Get it before the first payment, not at year end when you're scrambling to issue 1099s and the contractor isn't responding to emails.

The 1974 federal law that sets the rules for employer-sponsored retirement and health plans. It doesn't require companies to offer a 401(k) or pension, but if they do, ERISA dictates how those plans must be run: disclosure requirements, fiduciary responsibilities, and protections if the plan is mismanaged.