HR glossary

17 terms shown

E-Verify

An online federal system employers can use to confirm a new hire's eligibility to work in the US, using information from their Form I-9. It's voluntary for most employers but required for some.

Source: E-Verify.gov (opens in a new tab) ↗

Exempt employee

An employee who isn't entitled to federal overtime pay because their job duties and pay meet one of the exemptions in the Fair Labor Standards Act.

Source: US DOL Fact Sheet 17A (opens in a new tab) ↗

FICA

The federal Social Security and Medicare taxes. Employers withhold the employee's share from wages and also pay an employer share.

Source: IRS Topic 751 (opens in a new tab) ↗

FLSA (Fair Labor Standards Act)

The main federal law setting minimum wage, overtime pay, recordkeeping and youth employment standards.

Source: US DOL: FLSA (opens in a new tab) ↗

FMLA (Family and Medical Leave Act)

A federal law that gives eligible employees of covered employers job-protected, unpaid leave for certain family and medical reasons.

Source: US DOL: FMLA (opens in a new tab) ↗

Form I-9

The federal form employers use to verify the identity and employment eligibility of each person they hire. MadyHR.ai keeps an I-9 register that counts each deadline and stores the completed form.

Source: USCIS: Form I-9 (opens in a new tab) ↗

Form W-2

The form an employer gives each employee, and files with the government, to report the employee's yearly wages and taxes withheld.

Source: IRS: About Form W-2 (opens in a new tab) ↗

Form W-4

The form an employee fills in so their employer can withhold the right amount of federal income tax from their pay.

Source: IRS: About Form W-4 (opens in a new tab) ↗

Form 1099-NEC

A form used to report payments to non-employees, such as independent contractors.

Source: IRS: About Form 1099-NEC (opens in a new tab) ↗

FUTA

The Federal Unemployment Tax Act. Employers pay this federal tax, which helps fund unemployment benefits; it isn't withheld from employees' pay.

Source: IRS: Federal unemployment tax (opens in a new tab) ↗

Independent contractor

Someone who is in business for themselves rather than an employee. Whether a worker is a contractor or an employee depends on the facts of the relationship, not just what you call them.

Source: IRS: Contractor or employee? (opens in a new tab) ↗

Minimum wage

The lowest hourly pay allowed by law. There's a federal minimum, and many states and cities set higher ones; generally the higher rate applies.

Source: US DOL: State minimum wage laws (opens in a new tab) ↗

New hire reporting

A requirement for employers to report newly hired employees to their state, which is used to help with child support enforcement.

Source: US HHS: New hire reporting for employers (opens in a new tab) ↗

Non-exempt employee

An employee covered by the federal overtime rules, who must generally be paid overtime for hours worked over 40 in a workweek.

Source: US DOL: Overtime pay (opens in a new tab) ↗

Overtime

Extra pay for hours worked above a set limit. Under federal law, covered employees generally get at least one and a half times their regular rate for hours over 40 in a workweek; some states have extra rules.

Source: US DOL: Overtime pay (opens in a new tab) ↗

PTO (paid time off)

Paid time away from work, such as vacation. Federal law doesn't require paid vacation, but some states and cities require paid sick leave.

Source: US DOL: Vacation leave (opens in a new tab) ↗

Tipped employee

An employee who regularly receives tips. Special federal minimum wage and tip rules apply, and many states have their own.

Source: US DOL Fact Sheet 15 (opens in a new tab) ↗