Glossary of Payroll Terms

Net Pay

Also known as "take-home pay" - the portion of wages that remains after taxes and other deductions from pay.

New Hire Report

In the United States the Personal Responsibility and Work Opportunity Act of 1996 (the so-called Deadbeat Dads law) requires employers to report new hires to specified agencies within a pre-determined number of days from the hire date.

Non-Discrimination Testing

IRS-prescribed tests to determine if employer-provided benefits plans disproportionately favor highly compensated or key employees of the employer.

Non-Resident Alien

For federal income tax withholding purposes, a non-U.S. citizen who has not met one of the two residency tests and who is subject to U.S. taxes on income derived from U.S. sources. Any person in this country on a visa which is not issued as a resident alien or immigrant type.

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