Confused about a specific term or acronym? Solve the mysteries of terminology with this informative resource. Updated regularly with industry-specific vocabulary and concepts, the Glossary provides easy-to-understand definitions of tax-related terms.


Lag Quarter(s) The quarter(s) between the end of a base period and the quarter which includes the beginning date of the benefit year.

Leased Employment See Employee Leasing

Leave of Absence (LOA) Official permission to be excused from work or duty.

Legal Father A man who is recognized by law as the male parent.

Legal Mother A woman who is recognized by law as the female parent.

Levy See also Tax Levy

Liability Date The date an employer must begin reporting wages and paying taxes for unemployment insurance purposes. An employer should be clear as to the regulation of the states business is conducted in.

Liable State Any State against which a worker files a claim for compensation through the facilities of another (agent) State.

Lien Basis The amount of an employee’s pay that is subject to wage garnishment.The lien basis varies by lien type and jurisdiction. Often it is disposable income that is, gross pay minus taxes and other earnings or deductions required by law.

Lien/Levy An agency's legal action against the bank account or personal property of an individual or business in order to collect unpaid taxes. It is also a claim upon property to prevent sale or transfer until a debt is satisfied.

Lien Notification A court order or other document that specifies the terms of an employee lien (e.g., payee name, amount due, start date). This notification is yoursource document when setting up a lien and entering payee information and excludables.

Lien Type A category of lien that affects the lien priority and calculation basis.ADP currently supports Bankruptcy, Support Order, Garnishment, andTax Levy lien types

Limited Power of Attorney (LPOA) See Power of Attorney.

Lived In The city in which an employee resides.

LOA See Leave of Absence.

Local Income Tax A withholding tax deducted from an employee's wages as required by a city or local jurisdiction. The amount of withholding varies with the amount of earnings, frequency of pay, number of claimed exemptions, and marital status.

Local Tax Rate Percentage of withholding for a locality.

Local Withholding Rate Total percentage of withholding for a taxing locality.

Location/Department Experience Rating This analysis calculates an experience tax rate based upon the payroll(s) reported and specific benefit charges for each location/department. This analysis is used by management in allocating expenses associated with unemployment costs to the appropriate location or department.

Long Arm Statute A law permitting one state to claim jurisdiction over an individual living in another state.

Long Term Disability (LTD) An employee benefit that pays partial or total medical wages to an employee on extended medical leave. See also 3PSP.

Lookback Period The 12-month period running from July 1 of the second preceeding calendar year through June 30 of the preceeding calendar year; the employer's payroll tax liability during this period determines its depositor status for the current year.

Lower Authority Appeal The lower of two administrative authorities provided by the State unemployment compensation laws to make decisions with respect to appeals. A State agency with only one appeals authority should consider that as a lower appeals authority.

LPOA See Power of Attorney.

LTD See Long Term Disability.