Guide to Global Payroll Management - 2020 - 11-168

Guide to Global Payroll Management

GLOSSARY OF EQUIVALENT PAYROLL TERMS
U.S. Payroll Term
American Payroll Association (APA) - The
professional society for Payroll Professionals in
the U.S., with over 20,000 individual members.
For 29 years, the APA has served the payroll
community with its objectives of increasing the
Payroll Professional's skill level through
education and mutual support, obtaining
recognition for payroll as a professional
discipline, representing the payroll community in
Washington, D.C. and providing public service
education to the national workforce on payroll
taxation and employment-related issues.
Internal Revenue Code (IRC) - Federal tax
laws, generally referred to as the Internal
Revenue Code of 1986. Amendments to the
IRC occur frequently.
Fair Labor Standards Act (FLSA) - Also known
as the Federal Wage-Hour Law, the FLSA
regulates such areas as minimum wages,
overtime pay, and child labor for employers and
employees covered by the law.
Family and Medical Leave Act (FMLA) Federal law guaranteeing 12 weeks' unpaid
leave to most employees to care for newborn or
newly adopted children, or to deal with a serious
illness or injury suffered by the employee or an
ailing child, spouse, or parent of the employee.

Federal Insurance Contributions Act (FICA)
taxes - Combined federal taxes levied on
employers and employees for social security
(OASDI - retirement, disability and survivors
benefits) and Medicare (HI- health insurance for
the elderly and disabled). Social security and
Medicare have different wage bases that are
adjusted annually and tax rates. The Social
Security Administration manages these taxes.

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Canadian Payroll Term
Canadian Payroll Association (CPA) Founded in 1978, the CPA provides more
than 18,000 members and their delegates
with the vital information required to
enhance and adapt their organizations'
Canadian payroll operations. Its products
and services help members meet emerging
legislative requirements, changing
workplace needs, and technological
advances. The CPA actively represents
the interests of its members on a number of
different government fronts at the federal as
well as provincial and territorial levels.
Income Tax Act (ITA) - Federal tax laws,
with the last major revision in 1985.
Canada Labour Code - Federal
government employees and employees
working in certain industries such as banks,
airlines, shipping, or communication are
covered under the Canada Labour Code,
Part III and not under provincial legislation.
Provincial/Territorial Employment
Standards Acts - Employees are covered
under the employment standards for the
province/territory in which they work.
Provincial/territorial legislation regulates
minimum wage, hours of work, overtime,
child labour, maternity, parental, adoption
and compassionate care leaves, vacation,
public/general holidays, termination, and
other minimum standards that employers
must follow.

Canada/Quebec Pension Plan
(CPP/QPP) contributions - A government
pension plan that provides retirement and
disability benefits. Contributions are paid by
employers and employees to the CPP or
QPP.

© The Canadian Payroll Association/L'Association canadienne de la paie 2020
Guide to Global Payroll Management - 2020

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