Overtime Pay
Definition
Additional pay for hours worked beyond the normal schedule, often at a premium rate set by law or contract. Correctly tracking and rating overtime is a common payroll compliance point.
Related Terms in Payroll
Wage Garnishment
A legal requirement that an employer withhold part of an employee's pay to satisfy a debt, such as a court order or tax levy, and send it to the relevant party before paying the rest to the employee.
Form 941
The quarterly federal return US employers file to report wages paid and the income tax and FICA (Social Security and Medicare) taxes withheld and owed. It reconciles withholding to deposits made during the quarter.
Form 940
The annual federal return US employers file to report and pay federal unemployment (FUTA) tax. It is separate from the income and FICA taxes reported on Form 941.
Form W-4
The US form an employee completes so the employer can determine how much federal income tax to withhold from their pay, based on filing status, dependents and other adjustments.
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