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.
Provisional credit is a temporary credit that a bank or financial institution provides to a customer’s account during a transaction dispute. It allows the customer to access funds while the bank investigates issues such as fraud or billing errors. If the dispute is resolved in the customer’s favor, the credit becomes permanent; otherwise, it may be reversed.
Provincial tax is an additional income tax levied by provinces and territories in Canada on top of the federal income tax. The rates and rules vary depending on the province, which means residents may pay different amounts based on where they live. These taxes fund local services such as healthcare, education, and infrastructure.
Pre-tax deductions are amounts withheld from an employee’s paycheck before income and payroll taxes are applied. Common examples include contributions to retirement plans, health insurance premiums, and commuter benefits. These deductions reduce taxable income, which can lower the employee’s overall tax liability while offering valuable benefits.
Permanent Establishment (PE) risk refers to the possibility that a business operating in a foreign country is considered to have a taxable presence there. This can happen if the company has a fixed office, employees, or agents regularly conducting business abroad. If triggered, it may lead to corporate tax liabilities, penalties, and compliance obligations in that jurisdiction.
Per diem is a fixed daily payment that employers provide to employees traveling for work to cover expenses such as food, lodging, and incidental costs. Instead of reimbursing actual receipts, companies use per diem rates to simplify accounting and control travel budgets. These rates may vary by location and are often guided by government or company policies.
A Professional Employer Organization (PEO) is a service provider that partners with businesses to handle HR functions like payroll, employee benefits, compliance, and tax filings. Through a co-employment model, the PEO shares employer responsibilities while the client company manages daily operations. This helps businesses save time, reduce risks, and focus on growth.
A payout refers to the release of funds by a company or organization to an individual or group. It can include salary payments to employees, dividends to shareholders, or benefits like insurance or retirement distributions. Payouts are essential for fulfilling financial obligations and maintaining trust with stakeholders.
Payment in advance is a financial arrangement in which the buyer pays the seller before goods are shipped or services are provided. This method reduces the seller’s risk of non-payment but increases the buyer’s risk if delivery is delayed or not fulfilled. It is often used in international trade or high-risk transactions.
Parental leave is the period of job-protected time off work given to parents after the birth or adoption of a child. It allows them to care for their newborn or newly adopted child without risking job loss. The length and pay during parental leave vary by country, employer policies, and local labor laws.
A parallel run is a process used when introducing a new system, such as payroll or software, by running it alongside the existing one. This allows businesses to compare outputs, identify errors, and ensure the new system works correctly before fully switching over. It minimizes risks during system migration or process changes.
An operating budget is a financial plan that estimates a company’s projected revenues and expenses for a specific time, usually a year. It covers day-to-day costs such as salaries, rent, utilities, and supplies. Businesses use operating budgets to monitor performance, control spending, and plan for profitability.
An open account is a payment arrangement in international or domestic trade where a seller ships goods before receiving payment. The buyer pays at an agreed future date, often 30–90 days later. While this method benefits buyers with flexible terms, it poses higher financial risk for sellers without upfront payment guarantees.
On-call employment is a work arrangement where employees are only called in when needed rather than having fixed schedules. It provides flexibility for employers to manage peak demand but often leads to irregular hours for workers. This model is common in healthcare, hospitality, and service industries.
Occupational Health and Safety (OHS) is the system of laws, policies, and practices designed to keep employees safe at work. It covers areas such as hazard prevention, workplace ergonomics, safety training, and compliance with legal standards. Strong OHS programs reduce accidents, improve employee well-being, and ensure a safer work environment.
Off-cycle payroll refers to employee payments processed outside the normal payroll schedule. Companies use it to issue bonuses, correct payroll errors, or pay departing employees quickly. It ensures employees receive accurate and timely compensation without waiting for the next regular payroll cycle.
The O1B visa is a U.S. non-immigrant visa specifically for people with exceptional talent in the arts or outstanding accomplishments in the film and television industry. It allows these individuals to work in the U.S. for a particular employer, project, or production. This visa is often sought by artists, actors, musicians, and other creative professionals.
An O-1 visa is a U.S. non-immigrant visa granted to individuals who demonstrate extraordinary talent or achievement in areas such as science, arts, education, business, or sports. It allows these professionals to work in the U.S. temporarily under a specific employer or project. This visa is often used for top performers, researchers, and highly skilled specialists.
A notice period is the duration an employee must work after resigning or being terminated before leaving a company. It allows employers time to find a replacement and ensures knowledge transfer. The length of a notice period often depends on company policy, job role, or employment laws.