Plain-English definitions of AI, accounting, and SaaS-finance terms.
Fixed cash compensation paid to an employee on a regular schedule regardless of performance or company results.
Grouping payment transactions for processing together at scheduled intervals rather than individually in real time.
The management of employee benefits programs including health insurance, retirement plans, PTO, and other compensation components.
A federal law requiring employers with 20+ employees to offer continuation of group health insurance coverage to employees who lose coverage due to qualifying events.
Federal law allowing employees to continue group health coverage after leaving employment by paying full premiums.
A vesting provision where no equity vests until a minimum service period (the cliff) is completed, protecting against early departures.
A third-party company that legally employs workers on behalf of another business, managing payroll, taxes, and compliance across jurisdictions.
Non-cash compensation in the form of company ownership interests, including stock options, RSUs, and restricted stock, used to attract and retain talent.
Adherence to Fair Labor Standards Act requirements for minimum wage, overtime pay, and recordkeeping.
Federal law providing eligible employees up to 12 weeks of unpaid, job-protected leave annually for qualifying family and medical reasons.
An employer-sponsored account allowing pre-tax contributions for qualified medical or dependent care expenses, with annual use-it-or-lose-it requirements.
Taxes levied on wages and salaries, split between employee withholding and employer contributions, funding social programs like Social Security and Medicare.
A fixed daily allowance provided to employees for meals and incidentals while traveling for business, simplifying expense management and IRS compliance.
Annual or periodic cash award tied to achieving individual or company performance targets.
Minimum wage rate for construction and service workers on government-funded projects, set by the Department of Labor.
The process by which employers deduct income taxes from employees' paychecks and remit them directly to tax authorities on the employee's behalf.
Complete value of all monetary and non-monetary benefits provided to an employee in exchange for their work.
Performance-contingent compensation including bonuses and commissions that fluctuates based on results.
The timeline over which an employee earns the right to exercise stock options or receive equity grants, typically over four years.
A self-employed independent contractor who provides services to a business without being classified as an employee.
An employer contribution to employees' 401(k) retirement accounts, typically matching a percentage of employee contributions up to a salary limit.
