Glossary

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.

Results:

PAD See Pre-Authorized Draft.

P&I See Penalty and Interest.

Partial Claim A claim filed by a worker, normally assisted by the employer, for any week wherein the worker did not work a full week nor earn an amount equal or in excess of his weekly benefit amount.

Partial Unemployment An individual still attached to his employer, but through circumstances beyond his control, did not work a full week and earned less than his weekly benefit amount. A claim for partial unemployment is usually filed by the employer.

Part-Total Unemployment A week during which an individual works less than full time due to lack of work and earns less than his weekly benefit amount and there is no attachment to a regular employer.

Paternity Judgment The legal determination of fatherhood.

Payee A person or agency to whom payments for a wage garnishment are sent.In the case of child support, the payee can be the custodial parent or thechild support agency enforcing the child support order

Payroll Cycle Refers to the length of time between payrolls. For example, if an employer processes payroll every week, each week is considered a new payroll cycle.

Payroll Variation (Alaska) The state compares gross payroll from one quarter to the next-to determine a quarterly decline in payroll. (Increases in gross payroll are assigned a zero.) The quarterly decline is divided by the prior quarter gross payroll to determine the quarterly decline ratio. The quarterly decline ratios are added together and averaged. The average is compared to a state table to derive the employer tax rate.

Peg Balance The minimum bank balance required for any given account.

Penalty and Interest (P&I) Agency assessments for late deposits and/or filings.

Penalty Rate Some states will assign a penalty rate-if an employer is delinquent in paying taxes or filing quarterly contribution and wage reports. The penalty rate is often as high or higher than the maximum rate. In some cases, an additional percentage is added to the originally assigned rate in lieu of a specified penalty rate.

Pend/Hold To pend is to delay payment of benefits because there is a question about the claimant's eligibility.

Period of Employment The period beginning with the first day an employee works for an employer and extending through the last day he works prior to a termination.

PIN Personal Identification Number.

PIT Personal Income Tax

Plaintiff A person who brings an action, complaint, or suit in a civil case.

POA See Power of Attorney.

Pooled Account Some states allow certain not-for-profit employers a program to combine the unemployment insurance benefit charges of two or more reimbursable accounts. The benefit charges are pooled and typically one member of the pool is responsible for management of the program. Each member of the pool retains their own SUI account and remains responsible for payment of contributions.

Pooled Account A fund in which all contributions are mingled and undivided and from which benefits are payable to all eligible claimants.

Pooled Account Analysis This analysis outlines the pooled tax rate for the current and previous year(s). Detail of tax savings/loss is calculated and a determination is made as to the benefit of maintaining the pooled account.

Positive Reserve Balance When the contributions paid into an employer's SUI account have exceeded the benefit charges paid out during the specified period.

Potential Duration The total number of weeks of total unemployment for which an individual claimant may receive benefits in a benefit year or period of eligibility under the entitlement provisions of a State or Federal unemployment compensation program or any other program administered by a State agency.

Power of Attorney (POA) A legal document authorizing ADP to act as agent for our clients when dealing with state and federal agencies. Without a valid Power of Attorney form on file, the agencies are not authorized to release information to any party other than the employer.

PR Payroll.

Pre-Authorized Draft (PAD) A document similar to a check used to debit taxes from an ADP client's bank account if the client's bank is not a member of NACHA, or if the account cannot be accessed through a NACHA electronic transaction.

Predecessor The entity that existed prior to a partial or total transfer of a business.

Pre-Note or Pre-Notification A zero-dollar ACH transaction used to verify the accuracy of bank account information prior to automatic debits or credits, as in the case of direct deposit. The pre-note transmission serves as a notification to the bank of an ADP client or client's employee that actual ACH transactions will be processed against the account.

Private Support Withholding that is the result of a private agreement between parties or requested by the employee and often paid to a third party, for example, a trustee, bank, attorney, or estate. A phrase in a support order such as "agreement between the court and listed parties" identifies a private support order. This lien type has a low priority; it takes precedence over employee wage assignments and other voluntary deductions only.

Professional Employer Organization (PEO) See Employee Leasing

Property Right The claimant has property right to benefits once a valid monetary determination is issued, found the claimant to be nonmonetarily eligible for benefits and allowed waiting period credit or benefits. Once the claimant has established property rights, benefits cannot be stopped or pended without giving the claimant due process.

Prorating Prorating is the most common unemployment insurance charging method. Each of an individual's base period employers is simultaneously charged a proportional percentage of total benefits paid. The percentage is based on the individual's total base period wages paid by each affected employer.

Public Assistance Money granted from the Aid to Families with Dependent Children (AFDC) program to a person or family for living expenses. Eligibility is based on need.

Purged Refers to outdated information or records that are removed from ADP's systems.