Payroll Glossary

Leased Employees

Leased employees are employees of a leasing agency who are hired and trained for the client firm through the agency. Withholding, depositing, and reporting responsibilities remain with the leasing agency.

Levy

A levy is a garnishment of an employee's wages for nonpayment of taxes.

Liability

A liability is a debt of a business that has yet to be paid.

Long-Term Care Insurance

This is an insurance contract providing for coverage of qualified long-term care services, including diagnostic, preventive, treating, mitigating, and rehabilitative services. The contract is treated as an accident and health insurance contract for payroll tax purposes.

Lookback Period

This is the 12-month period running from July 1 of the second preceding calendar year through June 30 of the preceding calendar year. The employer's payroll tax liability during this period determines its depositor status for the current year.