Payroll Glossary - T
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Table I: Refers to IRS Uniform Premium Table I, which is used to calculate the value of group-term life insurance over $50,000.
Take-Home Pay: In the context of a federal tax levy, the amount of an employee's wages that remains after all normal deductions in effect at the time of the levy have been subtracted.
TAMRA .88: Technical and Miscellaneous Revenue Act of 1988.
Tax Equalization Plan: A plan offered by an employer to an employee working abroad that would provide the employee with the same take-home pay he or she would have in the United States
Tax Protection Plan: A plan offered by an employer to an employee working abroad that would guarantee the employee a foreign tax obligation no larger than he or she would have in the United States
Tax Reform Act of 1986 (TRA .86): Sweeping tax reform legislation that lowered tax rates and sought to eliminate many of the loopholes in the tax laws.
Taxable Wage Base: The maximum amount of employee compensation subject to social security, FUTA, and state unemployment insurance taxes.
Taxpayer Identification Number (TIN): A social security number or employer identification number, which serves as the taxpayer's account number with the IRS.
TEFRA: Tax Equity and Fiscal Responsibility Act of 1982.
Temporary Assignment: See 'short-Term Assignment..
Temporary Help Agency Employees: Workers hired through temporary help agencies who are screened and trained by the agency to provide services for client firms. They are employees of the agency, rather than the client firm.
TFA: Treasury Financial Agent.
Third-Country National: In the context of United States payroll, someone who is a non-United States citizen working in a country other than the United States
Third-Party Sick Pay: Payments made by a third party, such as a state or private insurer, to employees because of non job-related illness or injury.
Third-Party Designee: An individual authorized by an employer to correspond with the IRS regarding the completion and processing of an employment tax return (e.g., Form 940, 941, 945).
Time-and-a-Half: Payment of one and one half times an employee's regular rate of pay for hours worked over 40 in a workweek, as required by the Federal Wage-Hour Law (for nonexempt employees only).
TIN: Taxpayer Identification Number.
Tip Credit: A reduction in the minimum wage allowed for tipped employees (e.g., 50% of the federal minimum wage).
Tip Rate Determination Agreement (TRDA): An agreement by an employer with the IRS on a certain tip percentage and a requirement that 75% of the tipped employees agree to report at least the tip per- centage found in the agreement.
Tip Reporting Alternative Commitment (TRAC): An agreement between a hospitality employer and the IRS that bases FICA assessments on employee audits and requires the employer to educate its employees on tip reporting.
Title VII: The employment discrimination portion of the Civil Rights Act of 1964, which prohibits job bias based on race, sex, color, religion, or national origin.
Totalization Agreements: Agreements between the United States and foreign countries that prevent double social security and Medicare taxation of United States employees working abroad and aliens working in the United States
TRA .86: Tax Reform Act of 1986.
TRAC: Tip Reporting Alternative Commitment.
TRDA: Tip Rate Determination Agreement.
Treasury Financial Agent (TFA): One of two banks chosen to implement the Electronic Federal Tax Payment System for depositing federal taxes electronically.
Trust Fund Taxes: The amounts withheld by employers from employees. pay for federal income, social security, and Medicare taxes. They are referred to as trust fund taxes because the money is held in a special trust fund for the United States government. Amounts withheld for state and local income taxes are held in trust for the state or local government.
ยง218 Agreement: An agreement between a state or local government employer and the state social security agency under which the employees are subject to social security and Medicare coverage.
