Common Payroll Terms
Earnings
Record of wages paid.
Employee class
Employee class is a term used by the human resources/payroll system to define groups of employees.
Exempt employee
An exempt employee is a classification of employees whose job title and description make them exempt from provisions of the Fair Labor Standards Act. They are not eligible for overtime.
FICA (Federal Insurance Contribution Act)
FICA-OASDI and FICA-Medicare are mandatory taxes based on the Federal Insurance Contribution Act. All employees, except for SDSU students enrolled in at least half-time status, and certain non-resident aliens, must pay these taxes. FICA taxes are based on a flat percentage of your taxable income. There is a yearly limit for FICA-OASDI; there is not a yearly limit for FICA-Medicare.
Fiscal year
SDSURF's fiscal year begins July 1 and ends June 30.
Form 1042-S
IRS Form 1042-S is a year-end tax document provided to a non-resident alien who received wages protected by a tax treaty.
Form 8233
IRS Form 8233 Exemption from Withholding on Compensation for Independent Personal Services of a Non-resident Alien Individual is a form that must be filed by an NRA authorized to claim exemption from federal income tax withholding based on a tax treaty.
Form DE-4
State of California Form DE-4 is used to claim withholding allowances for state income taxes. If Form DE-4 is not filed, the allowance claimed on your IRS Form W-4 is used to establish your state income tax withholding.
Form W-2
IRS Form W-2 reflects all taxable wages you received from SDSURF during the calendar year and all taxes withheld from those wages. The form serves as an annual report that enables you to file your personal income tax return with the Internal Revenue Service (IRS). Form W-2 reports only wages paid during the year, regardless of when they were earned; that is, it does not include amounts earned but not paid until the next calendar year.
Form W-4
IRS Form W-4 Employee Withholding Allowance Certificate is completed by employees to indicate marital status and number of withholding allowances to use for tax calculations.
Form W-5
IRS Form Earned Income Credit Advance Payment Certificate is completed by employees to request qualified earned income tax credit payment advances.
Gross Pay
Gross pay is the total amount of wages paid to an employee prior to taxes or other deductions.
Out-of-cycle check
An out-of-cycle check is a manual process as opposed to the system generated checks issued on the 10th and 25th of each month. Out-of-cycle checks are issued under emergency situations (upon approval of the SR Administrator) or when an employee has terminated employment. Direct deposit is not available for out-of-cycle checks.
Net pay
Net pay is the amount paid to an employee after all taxes and deductions are taken.
Non-exempt employee
A non-exempt employee is an employee classification whose job title and description do not make them exempt from provisions of the Fair Labor Standards Act. They are eligible for overtime.
Non-resident alien (NRA)
An NRA is a foreign national who is on a temporary visa and is not making a permanent home in the U.S.
Resident alien
A resident alien is a non-U.S. citizen making a permanent home in the U.S. A resident alien is taxed the same as a U.S. citizen.
Semi-monthly pay period
SDSURF employees are paid on a semi-monthly basis. For work performed between the 1st and 15th of a month, a check is issued on the 25th of that month. For work performed between the 16th and the end of a month, a check is issued on the 10th of the following month.
Tax Treaty
Many countries have a tax treaty with the U.S. that provides for specific exceptions to federal tax withholding. Each tax treaty is different.
Termination
Termination is the ending of the employment relationship, either voluntary or involuntary departure.
Visa
A visa is an endorsement on a passport granting the bearer permission to be in the U.S. Valid documents for a visa include I-20, IAP-66, I-797, I-94, and certain EAD cards.
Wages
Wages consist of all payments for services rendered as an employee.
Withholding allowance
A withholding allowance is the number of exemptions you claim on a W-4 or DE-4 to calculate tax deductions.
Withholding tax
Both state and federal income withholding tax is withheld from your payroll check in accordance with tax laws. These deductions are deposited to your credit with the State of California and the Internal Revenue Service.