Approval chains are predefined steps in a business process that specify who must authorize a request before it is finalized. Commonly used in payroll, expense management, or HR systems, they ensure compliance and accountability. By setting clear approval paths, companies reduce errors, prevent fraud, and maintain smooth operations.
Annualized salary is the estimated amount an employee would earn in a year if their current pay rate were applied for all 12 months. It’s often used for part-time, temporary, or new hires to compare pay on a yearly basis. Employers use it to standardize salaries, while employees use it to understand total earning potential.
A work visa is a government-issued authorization that lets a foreign citizen work legally in a country for a set period. It usually requires employer sponsorship and may be tied to a specific job or sector. Work visas are essential for global mobility, ensuring compliance with immigration and labor laws.
A wholly owned subsidiary is a business entity whose entire share capital is owned by another company, known as the parent company. This structure allows the parent to control decisions, finances, and strategy while the subsidiary operates as a separate legal entity. It is often used for global expansion, risk management, and compliance purposes.
A W-2 form is an IRS tax document that employers must provide to employees each year. It details total wages earned and the amount of federal, state, and other taxes withheld from paychecks. Employees use this form to file their income tax returns and verify their earnings with the IRS.
Upward mobility refers to the career progression opportunities employees have to move into higher positions within a company or industry. It often involves promotions, salary increases, and greater responsibilities. Strong upward mobility fosters employee motivation, retention, and long-term professional growth.
Tax residency is the status that defines which country has the right to tax an individual or business. It is usually determined by factors like the number of days spent in a country, permanent home, or economic ties. Being a tax resident can affect income tax obligations, eligibility for tax treaties, and potential double taxation.
Tangible rewards are measurable, physical benefits that employees receive in exchange for their work or achievements. Examples include cash bonuses, gift cards, company merchandise, or paid trips. These rewards motivate employees by offering immediate, visible recognition and can complement long-term benefits like promotions or career growth opportunities.
Talent acquisition is the long-term strategy businesses use to find and hire qualified employees. Unlike basic recruiting, it focuses on building employer branding, workforce planning, and nurturing candidate relationships. Effective talent acquisition helps organizations secure top talent and maintain a competitive advantage.
T and E stands for Travel and Entertainment expenses that employees incur while performing job-related duties. This includes costs like airfare, hotels, meals, and client entertainment. Companies usually reimburse these expenses under set policies, and tracking T&E helps control budgets and ensure compliance with tax regulations.
A stock grant is a form of employee compensation where a company awards shares to workers, usually to reward performance or encourage retention. These shares may come with a vesting period, meaning employees earn full ownership over time. Stock grants align employee interests with company growth by offering potential long-term financial benefits.
A stipend is a set amount of money paid to individuals, often students, interns, or trainees, to support living or learning expenses. Unlike a salary, it is not based on hours worked but is meant to provide financial assistance during training or education. Stipends are common in academic, research, and internship programs.
A statutory employee is an independent contractor who is classified as an employee for tax purposes under IRS rules. Employers must withhold Social Security and Medicare taxes from their pay, but not income tax. This category typically includes certain salespeople, drivers, and insurance agents who work under specific conditions.
Statutory Sick Pay (SSP) is a benefit paid by employers to eligible employees who are unable to work due to illness. It provides a minimum level of income during short-term sickness, as set by government regulations. SSP helps employees manage financially while they recover, though some employers may offer additional sick pay benefits.
Single Sign-On (SSO) is an authentication system that allows users to log in once and access multiple applications without re-entering credentials. It enhances convenience by reducing password fatigue and improves security through centralized access management. Businesses often use SSO to streamline employee access to cloud tools and internal systems.
The SMART goals framework is a method used to create clear and achievable objectives. It ensures goals are Specific, Measurable, Achievable, Relevant, and Time-bound, making them easier to track and accomplish. Businesses and individuals use this framework to improve focus, accountability, and overall performance.
Settlement refers to the process of completing a financial transaction by transferring money or assets between parties. It ensures that buyers receive goods or securities and sellers receive payment as agreed. Settlements are common in banking, payroll, and securities trading, and timely execution is vital for financial accuracy and trust.
A Secure Payments System (SPS) is a framework that enables organizations to process financial transactions safely and efficiently. It uses encryption, authentication, and compliance protocols to protect sensitive data and prevent fraud. Businesses and governments rely on secure payment systems to ensure trust, accuracy, and confidentiality in money transfers.
Royalty payments are recurring fees made by one party (the licensee) to another (the rights holder) for the use of intellectual property. This can include patents, trademarks, copyrights, music, or brand names. They provide a way for creators and inventors to earn income while granting others legal rights to use their work.
A resident alien is a person who is not a U.S. citizen but qualifies as a resident for tax purposes under the green card test or the substantial presence test. They are generally taxed on worldwide income, similar to U.S. citizens. This status is important for determining tax obligations and eligibility for certain benefits.