Payroll and Global Mobility Glossary

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.