Payroll Glossary - F
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Fair Labor Standards Act (FLSA): See Federal Wage-Hour Law
Family and Medical Leave Act of 1993 (FMLA): Law guaranteeing 12 weeks. unpaid leave to most employees to care for newborn or newly adopted children, or to deal with a serious illness or injury suffered by the employee or an ailing child, spouse, or parent of the employee.
FASB: Financial Accounting Standards Board.
Federal Wage-Hour Law: The Fair Labor Standards Act of 1938, as amended. It regulates such areas as minimum wage, overtime pay, and child labor for employers and employees covered by the law.
FICA: Federal Insurance Contributions Act. It also describes the combined taxes levied for social security and Medicare.
Field Service Advice (FSA): Written advice to IRS field agents and examiners from the IRS Chief Counsel's office to guide them in handling particular factual situations.
Filing Information Returns Electronically (FIRE): The IRS's system for filing information returns (e.g., Forms 1099-MISC) electronically.
Financial Accounting Standards Board (FASB): Group that sets the standards for sound financial management.
Financial Control: The right of a business to direct and control the economic aspects of a worker's job.
Financial Statements: Reports that summarize a business's financial position and operating results (comprised of a balance sheet, income statement, and statement of cash flow).
FIRE: Filing Information Returns Electronically.
FIT: Federal Income Tax.
FITW: Federal Income Tax Withholding. FIT withheld from an employee's wages when they are paid.
Flat Rate Withholding: See supplemental Wages..
Flexible Benefits: The option to choose from a menu of benefits offered by an employer. See .Cafeteria Plan..
Flexible Spending Arrangement (FSA): An arrangement that allows an employee to have pretax dollars deducted from wages and put into an account to pay for health insurance deductibles and copayments and dependent care assistance (separate accounts for medical and dependent care FSAs).
FLSA: Fair Labor Standards Act (see Federal Wage-Hour Law).
Fluctuating Workweek: An arrangement between an employer and a nonexempt employee to pay the employee a fixed weekly salary even though the employee's hours may vary from week to week.
FMLA: Family and Medical Leave Act of 1993.
FMV: Fair market value. Used to determine the value of noncash, employer-provided benefits for payroll tax purposes, or the value of facilities provided to employees in lieu of wages.
Foreign Country: A country or territory not under the jurisdiction of the United States government.
Foreign Earned Income Exclusion: An election by a United States citizen or resident alien working abroad to exclude up to a certain amount of foreign earned income from the taxpayer's gross income.
Foreign Housing Cost Exclusion: An exclusion from income for reasonable foreign housing expenses exceeding a base housing amount that is available to United States employees working abroad whose tax home is not in the United States.
Form I-9: Employment Eligibility Verification
Form SS-4: Application for Employer Identification Number
Form W-2: Wage and Tax Statement
Form W-2C: Corrected Wage and Tax Statement
Form W-3: Transmittal of Wage and Tax Statements
Form W-3C: Transmittal of Corrected Wage and Tax Statements
Form W-4: Employee's Withholding Allowance Certificate
Form W-5: Earned Income Credit Advance Payment Certificate
Form W-9: Request for Taxpayer Identification Number and Certification
Form 941: Employer's Quarterly Federal Tax Return
Form 945: Employers Return of Withheld Federal Income Tax
Form 990: Return of Organization Exempt from Income Tax
Form 1040: U.S. Individual Income Tax Return
Form 1041: U.S. Income Tax Return for Estates and Trusts
Form 1065: U.S. Partnership Return of Income
Form 1096: Annual Summary and Transmittal of U.S. Information Returns
Form 1099-MISC: Miscellaneous Income
Form 1120: U.S. Corporation Income Tax Return
Form 2848: Power-of-Attorney and Declaration of Representation
Form 5500: Annual Return/Report of Employee Benefit Plan
Form 8109: Federal Tax Deposit Coupon
§401(k) Plan: A cash or deferred arrangement that allows employees to authorize their employer to place pretax dollars in a retirement plan that invests the money. The contributions (including those matched by the employer) and any earnings on them are not subject to federal income tax (most state income taxes also) until they are withdrawn.
§403(b) Annuity: An annuity or mutual fund that provides retirement income for employees of public schools and certain tax exempt organizations.
§457 Plan: A deferred compensation plan that provides retirement income for employees of public sector employers (e.g., state and local governments) and certain tax exempt organizations.
Fringe Benefits: Compensation other than wages provided to an employee, such as health and life insurance, vacations, employer-provided vehicles, public transportation subsidies, etc., that may be taxable or nontaxable.
FSA: Flexible spending arrangement; Field Service Advice.
FTD: Federal tax deposit.
FUTA: Federal Unemployment Tax Act. It requires employers to pay a certain percentage of their employees. wages (up to a maximum wage limit) as a payroll tax to help fund unemployment compensation benefits for separated employees.