📖 Glossary
500 money, math, and health terms explained in plain English — each with an example and a free calculator.
37 terms found in Income & Work. Clear filters
B
Billable Hours
Billable hours are hours of work that can be charged directly to a client, as opposed to non-billable time…
Billable Utilization Rate
Billable utilization rate is the share of total working hours that are billed to clients, expressed as a…
Bonus
A bonus is compensation paid to an employee in addition to regular salary or wages, often tied to company or…
Business Overhead
Overhead is the ongoing cost of running a business that is not directly tied to producing a specific product…
C
Commission
Commission is pay calculated as a percentage of the sales a person makes or the value of the transactions…
Cost to Company (CTC)
Cost to company (CTC) is the total annual amount an employer spends on an employee, including basic salary…
Cost-of-Living Adjustment (COLA)
A cost-of-living adjustment (COLA) is an increase in wages or benefits intended to offset inflation, so that…
D
Day Rate
A day rate is a fixed fee charged for one day of work, common among freelancers, contractors, and…
Decimal Hours
Decimal hours express time as a decimal number of hours instead of hours and minutes, which makes it easy to…
Double Time
Double time is pay at twice an employee's regular hourly rate. US federal law does not require double time…
E
Employee Stock Options
Employee stock options give an employee the right to buy a set number of company shares at a fixed price…
Employee Stock Purchase Plan (ESPP)
An employee stock purchase plan (ESPP) lets employees buy company shares through payroll deductions, often at…
Exempt Employee
An exempt employee, under the US Fair Labor Standards Act, is one who is not entitled to overtime pay…
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Non-Exempt Employee
A non-exempt employee, under the US Fair Labor Standards Act, is entitled to at least the federal minimum…
Notice Period
A notice period is the length of time an employee or employer must give before ending an employment…
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Paid Time Off (PTO)
Paid time off (PTO) is time away from work for which an employee is still paid, often combining vacation…
Passive Income
Passive income is money earned with relatively little ongoing effort once something has been set up, such as…
Pay Period
A pay period is the recurring span of time for which an employee's pay is calculated. Common schedules are…
Pay Raise
A pay raise is an increase in an employee's wage or salary. It is usually expressed as a percentage of the…
Pay Stub
A pay stub is a document provided with each paycheck that details earnings and deductions for the pay period…
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Salary
A salary is a fixed amount of pay for work, usually stated as an annual figure and paid in equal installments…
Severance Pay
Severance pay is compensation an employer provides to an employee whose job ends, typically through layoff or…
Shift Differential
A shift differential is extra pay for working less desirable hours, such as evening, night, weekend, or…
Side Hustle
A side hustle is paid work done in addition to a primary job, such as freelancing, tutoring, reselling…
Standard Mileage Rate
The standard mileage rate is an amount per mile, set by the IRS, that US taxpayers can use to calculate…
T
Timesheet
A timesheet is a record of the hours an employee or contractor works, typically listing start and end times…
Tip Credit
A tip credit is a provision in US wage law that allows employers to pay tipped employees a cash wage below…
Tip Pooling
Tip pooling is an arrangement in which tips received by several workers are combined and then divided among…
Total Compensation
Total compensation is the full value of everything an employer provides for an employee’s work, including…
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Definitions are for general educational purposes only and are not financial, tax, legal, or medical advice.