Payroll Glossary


An obligee is a person to whom money is owed.


An obligor is a person who owes money to an obligee.

One-Day Deposit Rule

If an employer's accumulated employment tax liability reaches $100,000 on any day during a monthly or semiweekly deposit period, the taxes must be deposited by the close of the next banking day. See also accelerated deposit rule.


These are hours worked by nonexempt employees in excess of maximums set by federal or state law that must be compensated at a premium rate of pay. Under the Fair Labor Standards Act, all hours worked over 40 in a workweek must be paid at not less than 150% times the employee's regular rate of pay.

Overtime Premium

This is the amount equal to half of an employee's regular rate of pay times all overtime hours worked.