Payroll Glossary

High-Low Substantiation Method

This is an IRS-approved safe-harbor method for reimbursing an employee's lodging, meal, and incidental expenses incurred while he or she was traveling away from home overnight on business.

Highly Compensated Employee

This is an individual who by virtue of salary or position within a company has restricted rights to participation in certain benefit plans. Plans found to discriminate in favor of highly compensated employees may be disqualified.