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.
Vesting An ERISA guideline stipulating that employees must be entitled to their benefits from a pension fund, profit-sharing plan or Employee Stock Ownership Plan, within a certain period of time, even if they no longer work for their employer.
Visitation The right of a non-custodial parent to visit or spend time with his or her children following separation or divorce.
Voluntary Contribution Additional monies paid into an employer experience rated SUI account, other than quarterly payments. A voluntary contribution can allow the employer to obtain a more favorable tax rate. In most states the contribution will increase the reserve balance of the account while other states credit the contribution to erase previous charges. Nearly half of the states allow employers to make a voluntary contribution payment to their experience rated account. From year to year, additional states may also allow a voluntary contribution.
Voluntary Contribution Analysis This analysis determines if a voluntary contribution is profitable for the employer. ADP-UCS prepares a report for our clients detailing the contribution amount required to reduce the SUI tax rate. If the contribution amount exceeds the net savings, our recommendation will be to not make the contribution. If the net saving exceeds the contribution amount, detailed instruction will be supplied on how to make the contribution payment to the state agency. Many states will print on the tax rate notice the amount an employer can pay as a voluntary contribution. Most states will not outline if the payment represents net savings or a net loss to the employer. A substantial change in taxable payroll can affect the contribution analysis, if your business expects a change of this nature, please notify your UCS Client Service Representative.
Voluntary Plan Disability Insurance (VPDI) A state option allowing an employer and/or individuals to purchase private disability insurance in place of a State Disability Insurance (SDI) plan. The employer or an insurance carrier administers this private insurance.
VPDI See Voluntary Plan Disability Insurance.