Term or acronym |
Definition |
Absenteeism |
The frequent absence of an employee from their job, often tracked for payroll processing. |
AEO |
Attachment of Earnings Order: A legal order for an employer to deduct money from an employee's wages to pay a debt. |
Allowance |
Additional money given to employees beyond their regular salary for specific purposes like housing, travel, or meals. |
Annual Leave |
Paid time off work granted to employees for holidays or vacations. |
Assignment Allowance |
Additional compensation provided to cover costs associated with an international assignment, such as hardship, risk, or inconvenience. |
Assignment Letter |
A formal document outlining the terms and conditions of an expatriate assignment. |
Back Pay |
Wages owed to an employee for past work that were not paid at the correct time. |
Benefit |
Non-wage compensation provided to employees, such as health insurance, retirement plans, and paid time off. |
BIR Form 2316 |
A form used in the Philippines for employees to report compensation income and taxes withheld. |
BR |
Basic Rate: A tax code used in the UK for employees with multiple sources of income. |
Capital Gains Tax |
A tax on the profit from the sale of property or an investment. |
CGT (Capital Gains Tax) |
A tax on the profit realized on the sale of a non-inventory asset. |
CIS |
Construction Industry Scheme: A UK tax deduction scheme for contractors and subcontractors in the construction industry. |
COLA (Cost of Living Adjustment) |
Compensation adjustments to account for differences in the cost of living between the home and host countries. |
Compensation |
Total monetary and non-monetary pay provided to an employee by an employer for work performed. |
Compliance |
Adherence to laws and regulations governing payroll practices, including tax withholding and reporting. |
Corporation Tax |
A tax levied on company profits. |
Cross-Cultural Training |
Programs designed to help expatriates understand and adapt to the cultural differences in the host country. |
CT |
Corporation Tax: A tax levied on company profits. |
Deduction |
An amount subtracted from an employee's gross pay, such as taxes, insurance premiums, or retirement contributions. |
Direct Deposit |
The electronic transfer of a payment directly from the payer's account to the recipient's account. |
Dividend Tax |
A tax levied on dividends received by shareholders. |
Double Taxation Agreement (DTA) |
Treaties between two countries to prevent income being taxed in both jurisdictions. |
DWP |
Department for Work and Pensions: The UK government department responsible for welfare and pension policy. |
Earnings |
Total amount of money an employee makes, including wages, salaries, bonuses, and commissions. |
EIN |
Employer Identification Number: A unique identifier assigned to a business entity by HM Revenue & Customs (HMRC). |
EPS |
Employer Payment Summary: A submission to HMRC detailing statutory payments and any adjustments to monthly or quarterly payments. |
Excise Duty |
A tax on specific goods, such as alcohol, tobacco, and fuel. |
Expatriate (Expat) |
An employee who is sent to work in another country for a prolonged period. |
Expatriate Insurance |
Health, life, and other insurance policies specifically designed for employees working abroad. |
Expatriate Payroll |
Payroll processing for employees working outside their home country. |
Federal Tax |
In countries like the U.S., this is a tax levied by the national government on income, profits, and other activities. |
Form 16 |
A form used in India for employers to provide details of salary paid and taxes deducted to employees. |
Fringe Benefits |
Additional compensation provided to employees beyond their regular wages, often tax-advantaged. |
Fringe Benefits Tax (FBT) |
A tax applied to most, but not all, fringe benefits, which are generally non-cash benefits provided to employees. |
Furlough |
Temporary leave of employees due to special needs of a company, which may be with or without pay. |
Goods and Services Tax (GST) |
A tax on goods and services, similar to VAT, used in countries like Australia, India, and Canada. |
Global Mobility Policy |
Company guidelines that govern the relocation process, compensation, and benefits for employees on international assignments. |
Global Mobility Specialist |
A professional responsible for managing and coordinating all aspects of employee relocations and international assignments. |
Global Talent Management |
The strategic process of attracting, developing, and retaining employees to meet the needs of a global organisation. |
Garnishment |
A court order directing that a portion of an employee's salary be withheld for the payment of a debt. |
Gross Pay |
Total amount of money earned by an employee before any deductions are taken out. |
HCM |
Human Capital Management: The comprehensive set of practices for recruiting, managing, developing, and optimizing the human resources of an organisation. |
Home Country |
The country where an employee's permanent home is located. |
Home Leave |
Company-provided travel benefits allowing expatriates to visit their home country periodically. |
Host Country |
The country to which an employee is relocated for an international assignment. |
Housing Allowance |
Financial support provided to expatriates to cover accommodation costs in the host country. |
HRIS |
Human Resource Information System: A system used to collect and manage employee data, including payroll information. |
HMRC |
Her Majesty's Revenue and Customs: The UK government department responsible for the collection of taxes and enforcement of tax laws. |
Hypothetical Tax |
The tax amount an expatriate would have paid if they had remained in their home country, used in tax equalisation calculations. |
Income Tax |
A tax that governments impose on financial income generated by all entities within their jurisdiction. |
Inheritance Tax |
A tax on the estate of a deceased person. |
INPS |
Istituto Nazionale della Previdenza Sociale: The main entity of the Italian public retirement system. |
IR8A |
A form used in Singapore for employers to report employee earnings and taxes withheld. |
IT |
Income Tax: The tax levied on individual income. |
Labour Cost |
Total amount of money paid to employees, including wages, benefits, and payroll taxes. |
Local Tax |
Taxes imposed by local governments (cities, counties) on earnings. |
Long-Term Assignment (LTA) |
An international assignment typically lasting one to three years. |
LTD |
Limited Company: A type of company structure in the UK where the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. |
Mobility Allowance |
Additional pay provided to employees to cover the costs associated with working in a different location or country. |
National Insurance Contributions (NICs) |
Payments made by employees and employers in the UK to qualify for certain benefits, including the state pension. |
Net Pay |
Amount of money an employee takes home after all deductions have been subtracted from the gross pay. |
Non-Exempt Employee |
An employee entitled to overtime pay as stipulated by the Fair Labor Standards Act (FLSA). |
OECD |
Organisation for Economic Co-operation and Development: An international organisation that works to build better policies for better lives. |
Off-Cycle Payroll |
Payroll processing that occurs outside of the regular payroll schedule, often for bonuses or corrections. |
Overtime |
Time worked beyond the regular working hours, typically compensated at a higher pay rate. |
P45 |
A form given to an employee when they leave a job, showing how much tax has been paid during the employment. |
P60 |
A form issued to employees at the end of the tax year detailing the total pay and deductions for the year. |
PAYE |
Pay As You Earn: A method of paying income tax and National Insurance contributions in the UK. |
Payroll Schedule |
The timetable for issuing employee paychecks, which can be weekly, bi-weekly, semi-monthly, or monthly. |
Pension |
A retirement plan funded by an employer that provides regular payments to employees after retirement. |
Per Diem |
A daily allowance for expenses incurred while working away from home. |
Permanent Establishment (PE) |
A fixed place of business that gives rise to tax liabilities in a foreign country. |
Property Tax |
A tax on property ownership, usually based on the value of the property. |
Repatriation |
The process of returning an expatriate employee to their home country at the end of an international assignment. |
Remittance |
Sending of money, typically for paying taxes or transferring funds from one entity to another. |
Reimbursement |
Compensation paid back to employees for out-of-pocket expenses incurred during business activities. |
Relocation Allowance |
Financial support provided to cover the costs of moving an employee and their family to a new location. |
RTI |
Real Time Information: A system for reporting payroll information to HMRC in real time. |
Salary |
A fixed regular payment, typically paid on a monthly or bi-weekly basis but often expressed as an annual sum. |
Sales Tax |
A tax on sales or receipts from sales, typically added to the purchase price. |
Secondment |
Temporary transfer of an employee to another position or employment, often in a different location or country. |
Short-Term Assignment (STA) |
An international assignment typically lasting less than one year. |
Shadow Payroll |
A parallel payroll system used to comply with host country payroll reporting requirements while the actual payroll is processed in the home country. |
SMP |
Statutory Maternity Pay: A weekly payment made to eligible employees in the UK who are on maternity leave. |
Social Security Tax |
A tax levied to fund the social security system, often deducted from employees' wages. |
Split Payroll |
Dividing an employee's salary between home and host country payrolls to meet tax and regulatory requirements. |
SSP |
Statutory Sick Pay: A weekly payment made to eligible employees in the UK who are off work due to illness. |
Stamp Duty |
A tax on legal documents, usually related to the transfer of assets or property. |
Statutory Benefits |
Employee benefits that are required by law, such as social security, workers' compensation, and unemployment insurance. |
T4 |
A form used in Canada to report income paid and taxes withheld for a calendar year. |
T4A |
A form used in Canada for reporting other income such as pensions, annuities, and self-employed commissions. |
TDS (Tax Deducted at Source) |
A means of collecting income tax in India where a certain percentage is deducted when making certain payments. |
Tax Code |
A code used by employers and pension providers in the UK to work out how much Income Tax to deduct from pay or pension. |
Tax Equalisation |
A policy to ensure that an employee's tax burden remains consistent regardless of the country in which they are working. |
Tax Protection |
A policy where an employer reimburses an expatriate for any additional taxes incurred due to the international assignment. |
Tax Residency |
The status of being a resident for tax purposes, which determines an individual's tax obligations in a country. |
Tax Withholding |
Portion of an employee's wages that is not included in their paycheck because it is remitted directly to the federal, state, or local tax authorities. |
Timesheet |
A record of the number of hours an employee has worked, used for calculating pay. |
Value Added Tax (VAT) |
A tax on the value added to goods and services, collected at each stage of production or distribution. |
Visa |
An endorsement on a passport indicating that the holder is allowed to enter, leave, or stay for a specified period of time in a country. |
Voluntary Deduction |
Deductions that an employee elects to have taken from their paycheck, such as for retirement savings, health insurance premiums, or charitable donations. |
Wages |
Compensation paid to employees based on the number of hours worked or the amount of work done. |
W-2 Form |
A form used in the U.S. to report wages paid to employees and the taxes withheld from them (UK equivalent is the P60 form). |
W-4 Form |
A form used in the U.S. for employees to indicate their tax situation to their employer (UK equivalent is the Starter Checklist). |
Withholding Tax |
A tax withheld from employees' wages and paid directly to the government by the employer. |
Year-End Payroll Processing |
Preparing and closing payroll for the end of the financial year, including generating tax forms and reconciling payroll data. |
YTD |
Year to Date: The period starting from the beginning of the current year and continuing up to the present day. |