Payroll Glossary

Immigration and Naturalization Service

The INS is the former name of the division of the Department of Justice responsible for enforcing U.S. immigration law. This division is now split into the U.S. Citizenship and Immigration Service (USCIS) and the Immigration and Customs Enforcement (ICE).

Income Statement

This is a financial statement showing a company's results of operations for an accounting period or fiscal year.

Independent Contractor

An independent contractor is a worker not considered an employee and for whom a hiring company therefore has no employment tax liability.

Indexing

Indexing refers to increases in contribution and benefits limits, wage bases, exclusions, and similar values to account for inflation. See also Consumer Price Index.

Information Return

This is a return sent to the IRS or the SSA that indicates information relevant to tax liability.

Internal Revenue Bulletin

The IRB is a weekly compilation of IRS rulings and procedures, Treasury Decisions, and other administrative judgments affecting payroll and other tax areas.

Involuntary Deductions

These are deductions over which employers and employees have no control, such as a levy for unpaid federal or state taxes.