Paycheck glossary: common payroll terms

These definitions explain common labels in plain language. Employer labels, taxable wage bases, legal classifications, and state or local treatment can differ. Use current official guidance for a specific payroll or filing decision.

Gross cash pay

Cash earnings before employee withholding and deductions. Salary, hourly, overtime, bonus, commission, mileage, trip, and other lines may contribute to cash gross under the employer's classification.

Net pay

The cash amount remaining after applicable employee withholding, deductions, and adjustments. Cash reimbursements may be added, while noncash imputed income can affect taxable wages without becoming cash paid. Net pay and one bank deposit are not always identical when pay is split.

Reimbursement

A payment intended to repay a business expense. Tax treatment depends on the plan, substantiation, payment facts, and jurisdiction; the label alone does not prove that it is excluded from wages.

Imputed income

A noncash benefit that can affect one or more taxable wage bases. Treatment depends on the fringe benefit and jurisdiction, and the amount may increase tax without increasing cash gross.

Federal income-tax withholding

Federal income tax withheld by an employer as a prepayment toward return liability. For standard periodic wages, one common method annualizes adjusted wages and applies W-4 inputs. Supplemental, legacy, and special payment circumstances can use other permitted methods.

State withholding

State individual-income-tax withholding from wages. Methods, certificates, resident/work-state routing, reciprocity, allocation, and defaults vary. Local taxes and employee payroll programs may appear as separate lines.

The wage base an employer uses for employee Social Security withholding. It can differ from gross pay. Threshold application depends on employer- tracked YTD wages and applicable employer or common-paymaster rules.

Medicare-taxable wages

The wage base used for Medicare withholding. Additional Medicare employer withholding depends on employer-tracked Medicare-taxable wages; final return liability can depend on different household facts.

FICA

A common payroll term for employee Social Security and Medicare taxes. Use the applicable Social Security-taxable and Medicare-taxable wages rather than assuming every cash dollar has the same treatment.

Form W-4

The federal employee withholding certificate. Current fields can include a filing choice, multiple-jobs input, credits, other income, deductions, and extra withholding. The effect depends on wages and all completed fields.

Federal W-4 filing choice

The standard choices include Single or Married Filing Separately, Married Filing Jointly, and Head of Household. A choice alone does not determine withholding without the remaining W-4 and payroll facts.

Pre-tax deduction

A payroll deduction that reduces at least one taxable wage base under the applicable rules. Federal income-tax, Social Security and Medicare, state, and local treatment depends on the plan, category, and jurisdiction. Do not infer state conformity from federal treatment.

After-tax deduction

A deduction taken from cash after the relevant payroll taxes are computed. The label does not replace plan-specific or jurisdiction-specific review.

401(k)

An employer-sponsored retirement plan. Traditional and Roth contribution treatment differs, and state treatment is not universal. Confirm plan rules, limits, wage bases, and payroll classification.

HSA

A health savings account available only when eligibility requirements are met. Payroll and state treatment can vary by contribution source and jurisdiction.

FSA

An employer-sponsored flexible spending arrangement. Healthcare and dependent-care arrangements have different rules; payroll and state wage treatment depends on the plan and jurisdiction.

Pay frequency

How often payroll is issued, such as weekly, biweekly, semimonthly, or monthly. Frequency affects per-period gross and can affect periodic withholding, deduction timing, and rounding.

YTD (year-to-date)

A running total through the current pay period. Many stubs show multiple YTD values for cash earnings, taxable wage bases, taxes, deductions, and employee programs. Use the program-specific value rather than one generic YTD total.

Supplemental wages

A federal payroll category that can include certain payments outside ordinary periodic wages. Classification and withholding method depend on payment presentation, aggregation, prior withholding, thresholds, and current IRS rules.

Box 14

A W-2 reporting area that may contain employer-provided information. Verify any label and amount using current Form W-2 instructions. An entry does not by itself change paycheck withholding or establish legal tax treatment.

Federal overtime return deduction

The approved TakeHome IQ certification archive does not currently define OBBBA eligibility, amount, reporting, or withholding treatment. Verify the current federal rule directly with IRS and DOL guidance. The app does not calculate an OBBBA-qualified-overtime amount.

Qualified overtime compensation

Not defined here because the approved archive lacks the controlling federal source family. Do not infer eligibility from an overtime label or internet shortcut.

Notice 2025-69

Not interpreted here because it is not an approved archived certification source. Consult the current official IRS publication before relying on a reporting or reconstruction method.

Schedule 1-A

Verify the current form and instructions directly with the IRS. This glossary does not state an OBBBA filing position from an unapproved source.