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.
OASDI Old Age Survivor and Disability Insurance
OBC See Official Bank Check.
Obligation Referring to the amount of child support to be paid by the responsible parent.
Obligation Amount of money to be paid as support by the responsible parent and themanner in which it is to be paid.
Obligee The person or agency to whom payments are owed (e.g., the custodialparent in the case of a child support order)
Obligor A person who is bound by a legal obligation or required to pay a lien orgarnishment. The employee who is subject to withholding is the obligor
Official Bank Check (OBC) Checks drawn on a bank account maintained and reconciled by the providing bank.
Offset The amount of money taken from a parent's state or Federal Income Tax refund or other government-administered payment (e.g., unemployment insurance or state disability insurance) to satisfy a child support debt.
Offset Credit A credit towards the Federal Unemployment Tax Act (FUTA) tax allowed to employers who pay a state unemployment tax.
One-day Deposit Rule If an employer's accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next banking day.
Order The ruling of a magistrate, judge, or properly empowered administrative officer.
OSHA Occupational Safety Hazards Act. A federal watchdog of employee safety.
Other Compensation or Other Comp Any additional earnings, other than wages, declared on an individual's annual tax document and reported on Form 1099. Some types of Other Comp can be included on an employee's W-2. Non-employees usually receive a 1099 rather than a W-2.
Overpayment An amount of benefits paid to an individual to which the individual is not legally entitled, regardless of whether or not the amount is subsequently recovered.
Overtime Hours worked by nonexempt employees in excess of maximums set by federal or state law that must be compensated at a premium rate of pay (e.g., under the FLSA, all hours worked over 40 in a workweek must be paid at not less than 150% times the employee's regular rate of pay)
Overtime Premium Amount equal to one half of an employee's regular rate of pay times all overtime hours worked