Payroll Glossary

Negative-Account Employer

A negative-account employer is an employer whose unemployment tax contributions are less than the benefits charged to its account.

Net Pay

Net pay is that part of an employee's wages that remains after all deductions have been subtracted.

Net Worth

This is the amount by which a company's assets exceed liabilities.

Non-Discretionary Bonus

A nondiscretionary bonus is a contractual or agreed-upon bonus or incentive related to production, efficiency, attendance, quality, or some other measure of performance.

Non-Exempt Employees

Nonexempt employees are covered by the minimum wage and overtime provisions of the Fair Labor Standards Act, and may be paid on an hourly or salary basis.

Non-Qualified Plan

In the context of employee benefits, this is an employer plan that does not meet IRS qualification requirements. Nonqualified plans can be discriminatory.

Non-Resident Alien

This is an individual who is neither a U.S. citizen nor qualifies as a resident alien.

Noncash Fringe Benefits

These are benefits paid to employees in a form other than cash, such as health insurance, company-provided vehicles, and group-term life insurance.

Normal Retirement Age

This is the age at which full, unreduced Social Security benefits can be received. The current normal retirement age is 65; it will gradually increase to age 67 by the year 2027.