Glossary of Payroll Terms

Circular A

The Agricultural Employer's Tax Guide published by the IRS. The publication provides guidelines and instructions to employers about farm workers' federal tax responsibilities, which are different than those of the regular employees (those that use the Circular E). Circular A includes the basic IRS rules for withholding and depositing tax and for filing employer tax obligations.

Circular E

The Employer's Tax Guide published by the IRS. The publication provides guidance and instructions to employers about their federal tax responsibilities. It includes the basic IRS rules for withholding and depositing tax and for filing employer tax obligations.

Common-Law Test

A set of guidelines used by the IRS that measures the control that an employer exercises over a worker. A worker that meets this test is considered to be an "Employee."

Compensation

All cash and non-cash remuneration given to an employee for services performed for the employer.

Compensatory Time Off

A form of overtime awarded to nonexempt employees for hours worked over 40 hours in a week not by cash payment but by time earned which can be taken as leave time at a later date. This is the preferred method of "overtime."

CPP

Certified Payroll Professional. A professional designation obtained by successfully completing the certified payroll professional examination.

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