As a global payroll professional, do you ever find yourself confused when trying to decipher international acronyms, comprehend obscure terminology and decode jargon? You’re not alone. Add a different language to the mix and understanding payroll can be downright exhausting.
Luckily, there are a few helpful resources.
Knowing global payroll terms may not make you the most interesting person in the room, but it will allow you to be a great resource in your company and among colleagues.
Take our quiz to improve your global payroll prowess and then familiarize yourself with the resources we’ve compiled. How many terms can you get right?
These questions and answers highlight several international payroll terms that may confound a payroll novice or U.S. payroll professional, but there are countless others.
For example, acronyms run amok in the global payroll arena. Here are some popular acronyms:
COLA: Cost-of-living adjustment used for international compensation provided to expatriate employees to cover the excess cost of everyday living expenses in a foreign location.
CPP: Canada Pension Plan. Employers must withhold CPP contributions for employees ages 18 to 70, who are in pensionable employment and not disabled, and remit them to the Canada Revenue Agency. Employers also must contribute an amount equal to their employees.
FICA: Federal Insurance Contributions Act. A law that requires employers to withhold taxes from wages paid to employees. U.S. citizens or resident aliens who work abroad may be required to pay FICA taxes under the laws of the country where they work.
HMRC: Her Majesty’s Revenue and Customs, the U.K. authority that is responsible for the collection of income tax and national insurance contributions. The department also is responsible for enforcing the national minimum wage.
NICs: National Insurance Contributions. These social insurance contributions are paid in the U.K. by employees and employers on earnings. Contributions are collected by the HMRC through the Pay As You Earn system.
WPS: Wage Protection System. An electronic salary-transfer system that allows institutions to pay wages through banks that are authorized to provide the service. Used in the United Arab Emirates, Qatar and Saudi Arabia.
You also can find payroll terms in English in the Bloomberg BNA Decision Support Network’s Glossary of Payroll Terms.
If you’re still stumped by an international payroll term or acronym, drop us a line. We’re all always looking to making payroll easier to understand.
Take a free trial to Bloomberg BNA’s International Payroll Decision Support Network, your one-stop resource for reliable, up-to-date guidance and analysis in every area of payroll administration and compliance.
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