Payroll and Tax Terms Explained

Overtime exempt means a job isn’t covered by federal overtime pay rules. Learn the salary and duties tests, common exempt roles and how it differs from non-exempt.

Pre-tax 401(k) contributions cut your taxes now; Roth 401(k) contributions are taxed now but can be withdrawn tax-free later. Compare them with a simple example.

Per diem means “per day.” At work it can mean a daily travel allowance or a job paid by the day. Learn how both work and when per diem is taxable.

Contractors run their own business; employees work under an employer’s control. Learn the tests the IRS and DOL use and why classification matters.

Double time pay is twice your regular hourly rate. Learn when it applies, how to calculate it and how it differs from time and a half.

On a paycheck, OT stands for overtime: pay for hours worked beyond the normal limit, usually 40 hours a week. See how to read OT lines and check the math.

Salaried workers earn a fixed amount per year; hourly workers are paid for each hour worked. Compare pay, overtime, flexibility and how to convert between them.

Time and a half is 1.5 times your regular pay rate, the federal overtime rate for hours over 40 a week. See who gets it and how to calculate it.

A pay stub shows how your paycheck was calculated: earnings, taxes, deductions and net pay. Here’s how to read every line and spot mistakes.

A statutory employee is a worker the IRS treats as an employee for Social Security and Medicare, but who files business expenses like a contractor. See who qualifies.