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.


Tax In the context of ADP's Tax Filing Service: The actual monies ADP withholds from an employee or employer that are due to a tax agency.

Taxable The actual amount of wages or compensation that are subject to a tax type and used to calculate the tax due.

Taxable Fringe Benefit The value of certain noncash fringe benefits received from an employer is considered part of an employees compensation. An employer generally must withhold income tax on these benefits from an employees regular pay for the period the benefits are paid or considered paid. For moreinformation on taxable fringe benefits, see Fringe Benefits under Employee Compensation in Publication 525.

Taxable Payroll The dollar value of all wages subject to the unemployment insurance tax.

Taxable Wage Base The maximum amount of employee compensation subject to Social Security, FUTA, and state unemployment insurance taxes.

Tax Audit This report verifies the accuracy of the most current SUI tax rate(s) assigned by the State agency. Benefit charges and credits are verified to assure the state agency has assigned the correct tax rate for each ADP-UCS client.

Tax Bracket The level of income tax of a given individual, as indicated by the amount of taxes he/she pays on his/her final dollar of taxable income. also called marginal tax bracket or tax rate.

Tax Levy The attachment of a portion of an employee’s wages (after credit forfederal or state exemptions) to the Internal Revenue Service (IRS) or state government for payment of delinquent taxes.

Taxpayer Identification Number (TIN) A social security number, employer identification number, or an individual taxpayer identification number which serves as the taxpayer's account number with the IRS.

Tax Rate The unemployment tax rate assigned to an employer by the state agency. The rate multiplied by taxable wages is the amount of quarterly contributions owed by an employer.

Tax Rate Analysis This analysis compares the tax rates of two or more years. The tax savings/loss is calculated for the current year or the cumulative of two or more years.

Tax Rate Notice Annual report issued by the state agency showing the unemployment tax rate assigned for the year period. Most states utilize a calendar year period while a small number utilize a fiscal year period.

Tax Rate Projection This analysis can project the SUI tax rate for the next year. Employers use this analysis most often for budgeting purposes.

Tax Rate Verification ADP-UCS verifies the accuracy of the SUI tax rate and its components. Tax rate assessment found to be in error is protested to the appropriate state agency. Protests made to the state agency are closely monitored and the result is communicated to the employer.

Tax Service An ADP tax filing service offered primarily to businesses with more than 1,000 employees who process their payroll in-house or use ADP for only a portion of their payroll processing.

Teledata A service enabling ADP payroll clients to phone in their payroll information to ADP operators for processing.

Tentative Credit The credit applied when State Unemployment Insurance (SUI) wages are less than Federal Unemployment (FUTA) wages.

Third Party Sick Pay (3PSP) Third Party Sick Pay (3PSP) is a disability insurance benefit that provides employees with partial or full wage benefit payments while on long-term medical leave. The payments are made to employees through an insurance company, union plan, or a state temporary disability plan instead of through their employer.

Tipped Employee An employee who works as a food server, baggage handlers, hairdressers, and other occupations in which the employee regularly receives $30 or more a month in money and goods for services performed by. Tips go beyond the stated amount of the bill and are given voluntarily.

TotalPay® This comprehensive payroll payment service combines the freedom of Full Service Direct Deposit with the convenience of ADPCheck. Employees choose either method, and ADP distributes employees' pay accordingly -- directly into employee-designated bank accounts or with paper checks issued on an ADP account. TotalPay creates a complete solution, providing you with added flexibility.

TotalPay ADP's payroll payment package that includes ADPCheck and FSDD.

TotalPay® Card ADP's TotalPay Card is a VISA®-branded stored-value payroll card that gives employees instant access to their salary. Each pay period, the card is loaded with the employee's net pay. Employees can withdraw cash as they need it from local ATM machines, or use the card at any merchant displaying the VISA logo. They can also use the card to make PIN-based transactions, where they can get cash back from participating merchants.

Total Tax An ADP service that assists employers in responding to unemployment benefit claims and controlling agency-assigned SUI experience rates.

Total Tax Plus An ADP service that assists employers in responding to unemployment benefit claims and controlling agency-assigned SUI experience rates.

Tracer An agency or client inquiry being researched and resolved by ADP.

Transfer of Experience - Total or Partial See Merger/Acquisition/Divestiture Analysis