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Availability. The generator is not yet live on lexsalim.com. United Kingdom support is in development; United States and Canada are planned.
United States support in the Free Payroll & Payslip Generator is planned. This glossary explains the terms you will meet on a US pay statement so that the eventual US rule pack is easy to understand. It states no rates or wage bases; those are set by federal and state authorities and change.
Pay stub
The American name for a payslip. It shows gross wages, each withholding and deduction, net pay and, usually, year-to-date totals. Whether an employer must provide one, and in what form, varies by state.
Form W-4
The form an employee completes so the employer knows how to calculate federal income tax withholding: filing status, dependants and any extra withholding the employee requests. The employer keeps it on file; it is not sent with each payslip.
Federal income tax withholding
The amount of federal income tax the employer withholds from each pay cheque based on the W-4, the pay frequency and the IRS withholding method in force for the year.
FICA
The Federal Insurance Contributions Act taxes: Social Security and Medicare. Both the employee and the employer pay a share; the employee's share is withheld from wages and the employer's share is an additional employer cost. Social Security contributions apply up to an annual wage base that the Social Security Administration sets each year.
State and local withholding
Most states levy an income tax that the employer withholds; a few do not. Some cities and localities add their own. The rules, forms and rates differ state by state, which is why each state needs its own verified rule pack before LexSalim can offer it.
Pre-tax and post-tax deductions
Some deductions (for example certain retirement-plan or health-plan contributions) reduce taxable wages before withholding is calculated; others are taken after. The order matters to the result.
Net pay
Gross wages minus all withholdings and deductions.
Employer-side items
Federal and state unemployment taxes (FUTA and SUTA) are employer costs, not employee deductions, and would not appear as deductions on a pay stub.
Filing is separate
Producing a pay stub does not deposit withheld taxes with the IRS or a state, and does not file quarterly or annual returns (such as Form 941 or Forms W-2). See Payslip generation versus payroll tax filing.
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Related articles
- Canadian payroll terminologyCPP and QPP, EI, federal and provincial tax, TD1 forms and the Québec differences that appear on a Canadian pay statement. Conceptual only; no rates.
- Earnings and deductions explainedThe lines that appear on a payslip: the kinds of earnings that make up gross pay and the kinds of deductions that reduce it to net pay.
- Payslip generation versus payroll tax filingA payslip documents a payment. Reporting and paying tax to HMRC, the IRS or the CRA is a separate obligation that LexSalim's free generator does not perform.
- Contacting supportUse the contact form, email [email protected] or call +44 333 011 8207. A person replies, usually within a few working days. Do not send case documents or financial records.