Payroll Glossary - I

IIRIRA: Illegal Immigration Reform and Immigrant Responsibility Act of 1996.

Illegal Immigration Reform and Immigrant Responsibility Act of 1996: Law enacted in 1996 that amends IRCA by reducing the number of documents that employers must accept to prove a new hire's identity and work authorization.

ILM: Internal Legal Memorandum.

Immigration Reform and Control Act of 1986 (IRCA): Law enacted in 1986 that prohibits employers from hiring persons who are not authorized to work in the United States and from discriminating against those who are based on their national origin or citizenship.

Impute: The addition of the value of cash/noncash compensation to an employee's taxable wages in order to properly withhold income and employment taxes from the wages.

Incentive Stock Option (ISO): A stock option plan that gives an employee the opportunity to buy the employer corporation's stock at a fixed price for a certain period of time, and that offers favorable tax treatment if certain conditions are met.

Income Statement: A financial statement showing a company's results of operations for an accounting period or fiscal year.

Income Tax Treaties: Treaties between the United States and foreign countries that may have provisions govern- ing the tax treatment of United States employees working in those countries, as well as aliens from those coun- tries working in the United States

Indefinite Assignment: See .Long-Term Assignment..

Independent Contractor: A nonemployee contracted by a business to perform services. Although the business specifies the result of the work to be performed, it has no right to control the details of when, how, or who will ultimately perform the work.

Individual Retirement Arrangement: A trust created or organized for the exclusive benefit of an indi- vidual or his or her beneficiaries.

Individual Taxpayer Identification Number (ITIN): A tax reporting identification number issued to aliens in the United States who cannot get a social security number but are required to file a tax or information return with the IRS.

Information Return: A return sent to the IRS (e.g., 1099 series) or the SSA (e.g., Form W-2, Copy A along with Form W-3 or 6559) that indicates information relevant to tax liability.

Information Statement: A statement sent to a payee (e.g., 1099 series) or an employee (e.g., Form W-2) that indicates payments made and taxes withheld by the party issuing the statement.

INS: Immigration and Naturalization Service.

Interactive Voice Response (IVR): In the employment context, a telephone system that allows employ- ees to make changes by touch-tone phone to their payroll and personal data.

Internal Audit: An audit of a business's policies, procedures, operations, and records carried out by employees of the business as opposed to outside parties.

Internal Control: Measures used by a company to safeguard company assets by preventing errors, waste, embezzlement, and fraud.

Internal Legal Memorandum (ILM): An interpretation of a point of tax law designated for internal use by the IRS.

Internal Revenue Bulletin (IRB): Issued regularly (weekly except during the summer) by the IRS, the IRB contains recently issued regulations, revenue procedures, and other agency announcements.

Internal Revenue Code (IRC): Federal tax laws. Generally referred to as the Internal Revenue Code of 1986, which was the year of the latest major overhaul of the Code. The IRC also comprises Title 26 of the United States Code.

Internal Revenue Service: Federal agency charged with interpreting, implementing, and enforcing the tax laws of the United States

Internal Revenue Service Restructuring and Reform Act of 1998: Law enacted in 1998 to reform the governance structure of the IRS to make it more responsive to taxpayers and to promote electronic filing of information.

Internet Payroll: Payroll processing solution that utilizes the Internet technology to transfer payroll data and generate payroll reports To learn more about Internet Payroll.

Interstate Commerce: The exchange of goods and/or services across state lines. It provides a basis for congressional and federal government agency regulation of wages and hours of work and other employ- ment-related matters.

IRA: Individual Retirement Arrangement.

IRB: Internal Revenue Bulletin.

IRC: Internal Revenue Code.

IRCA: Immigration Reform and Control Act.

IRS: Internal Revenue Service.

ISO: Incentive Stock Option.

ITIN: Individual Taxpayer Identification Number.

IVR: Interactive Voice Response.