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Finance and Administration

Glossary of Terms

Click on the alphabetical categories below to view each of the terms.

A - E | F - J | K - O | P - T | U - Z

A - E

Annual Salary
The total regular gross yearly pay for an employee.

Applicable Gross
The amounts remaining after all dental, medical and retirement, deductions are calculated. The remainder is the amount taxable for Federal Insurance Contributions Act (FICA), Federal, State and City taxes (where applicable).

Calendar Year
The calendar year, January 1 through December 31, used for tax purposes. Year-to-date pay and taxes are based on the calendar year.

Child Support
A division of the Administration for Children's Services responsible for ensuring financial support for children by non-custodial parents by locating absent parents, establishing paternity, obtaining/ enforcing support orders, and collecting/disbursing payments.

Credit Union deduction
A paycheck deduction which is deposit into your personal account with The Academic Federal Credit Union. The Academic Federal Credit Union is affiliated with Pace University. Staff members, their spouse and children are eligible to join.

Disposable Earnings
Portion of an employee's earnings left after deducting those amounts that are required by law to be withheld including taxes,Social Security, Medicare, or contributions to the Academic Federal Credit Union.

Direct Deposit Program
The electronic transfer of pay from Pace University's account to an employee's bank accounts. Funds are available in the employees' bank account on pay day.

Direct Deposit
The electronic transfer of an employee's net pay directly into financial institution accounts designated by the employee, thus avoiding the need to receive a "live" check.

Earth Share
Earth Share is a national wide network of the most respected environmental and conservation organizations, offers an easy way to care for our health, water,air, land and wildlife.

Employee's Withholding Allowance Certificate
Form used to determine the amount of federal and state and local taxes withheld from pay based on the marital status and number of allowances claimed. Every employee is required to complete the form. The W-4 form is for federal taxes and the IT-2104 and IT-2104-E are for New York State and local taxes.

Exception Pay Employee
An annually salaried employee who receives a standard salary each pay period unless exception transactions, such as leave without pay, are submitted to alterhis amount.

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F - J

Federal Insurance Contributions Act (FICA)
Consists of Social Security and Medicare taxes. Abbreviated as Fica-SS and Fica-HI.

Federal Tax
The amount of tax withheld for federal taxes. Shown on pay statement.

Federal Insurance Contributions Act.

Federal Insurance Contributions Act which represent Social Security.

Federal Insurance Contributions Act which represent Medicare Tax.

Fiscal Year
The University's fiscal year begins July 1 and ends June 30.

A party who receives notice, as a result of a legal proceeding, to retain custody assets, such as a specified dollar amount from wages.

A deduction made from an employee's wages as a result of legal proceedings. The employer is required to withhold 10% from the employee's salary in order to satisfy the employee's creditor.

Gross Pay
The dollar amount earned during the pay period. Gross pay represents total pay before taxes and other deductions are taken.

Gross Up
An IRS-approved formula that employers can use to determine the taxable gross payment when the employeer wishes to pay the employees share of the tax.

New York State Higher Education Service Organization

Hourly Employee
Per diem or hourly paid employees who get paid for actual hours worked. There is generally a two-week pay lag for positive pay employees.

Hourly rate
Rate of pay for certain classes of employees who are paid by the hour.

Independent Contractor
A non-employee contracted by a business to perform services. Although the business specifies the result of the work to be performed, it has no right to control the details of when, how or who will ultimately perform the work.

Employee's Withholding Allowance Certificate.The New York State Employee's Withholding Allowance Certificate used to determine the amount of for the taxes withheld based on marital status and number of allowances claimed.

City of New York Certificate of Exemption from Nonresident Earnings Tax Withholding.

NYS, City of New York and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax.

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K - O

The University's electronic automated payroll and timekeeping processing and record keeping system.

A notice from the IRS instructing the employer to collect an amount owed to the IRS by an employee.

Maximum Social Security Wage Base
The maximum amount of wages in a calendar year that is subject to Social Security tax. Social Security Administration changes this wage base annually. This change is posted on the Intranet effective January of each year.

Medicare Tax
Tax for the Medicare Program withheld from pay for most employees at a rate of 1.45% of Medicare-covered wages.

Net Pay
Take home pay calculated by subtracting all taxes and other deductions from gross pay.

Paid compensation for working hours beyond the normal tour of duty.

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P - T

Pay Calculation
The calculations of all pay events (regular gross pay, overtime, raises) necessary to produce a pay check.

Pay Date
The date a paycheck is issued or credited to an employee's bank account.

Pay Lag
The time between the dates pay was earned and paid.

Pay Period
The days for which the pay date covers for regular pay.

Pay Stub
The attachment to the paycheck containing itemized transaction details such as gross pay, deductions, etc. for the current pay period and calendar year-to-date.

Pay Distribution Code
Codes assigned by the various campuses which designate the campus for check distribution purposes.

Payroll Number
A two-digit code used to identify a pay period in a calendar year.

Pre-note or Pre-notification
the process financial institutions require for individuals who are trying to establish electronic direct deposit services.

Release of Levy
A notice from the IRS issued to the employee to present to the employer to stop deductions from pay in connection with an IRS Tax Levy.

A transaction that debits funds that have been electronically deposited in a bank account. Reversals are done by the Payroll Office only when funds for which the employee is not entitled to have been deposited directly into an account.

Social Security Administration
The nation's primary income security agency. Administers the federal retirement, survivors, and disability programs, as well as supplement security income (SSI) for the aged, blind, and disabled.

Shift Differential
Extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings).

Social Security Number
A taxpayer identification number used by the Social Security Administration (SSA) to record employee earnings for future social security and Medicare benefits.

Social Security Tax
Tax for Social Security withheld from pay for most employees at a rate of 6.2% of Social Security covered wages up to the maximum Social Security wage base.

Stop Payment
A transaction that stop payment before the pay credit reaches the bank. Stop payments are done as soon as employees notify the payroll office of a lost or stolen check.

State Tax
The amount withheld from pay check for New York State income taxes.

Supplemental Wages
Compensation received by employees other than their regular pay, such as bonuses, commissions, and serverance pay. Income tax may be withheld from such payments at a flat rate under certain circumstances.

Tax Exempt
Limited conditions prescribed by the Internal Revenue Service or New York State Department of Taxation of Finance based on income, previous tax liability,age, and/or status as a dependent on someone else's tax return, when if met, require no income taxes to be withheld.

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U - Z

United Way
United Way contributions will help provide important assistance toward ending hunger and homelessness in our communities,providing increase access to healthcare for our seniors and children, supporting education and early childhood development, or improving workforce development.

Wage Attachment
A notice from a credit agency, or government office instructing the university to remit outstanding payments to their office for past due amounts owed.

Withholding Allowance
The number of allowances (dependents and other factors) designated on the Employee's Withholding Allowance Certificate. Used in determining the amount of income taxes withheld.

W - 2 Form
A record of earnings and tax withheld for the year. A W-2 is used for filing federal, state and local tax returns. Distributed to all employees by January 31 of the following year.

W - 2C
Adjustment to the W-2 form to fulfill government wage and tax reporting requirements.

W - 4
The federal Employee's Withholding Allowance Certificate used to determine the amount of taxes withheld based on marital status and number of allowances claimed.

Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.

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