Glossary

The ADA is a federal law that prohibits workplace discrimination against qualified individuals with disabilities. It requires reasonable accommodations during the hiring and employment process.

Applicant ranking is the process of ordering candidates based on how well they meet job qualifications. It helps hiring teams prioritize applicants and make more consistent hiring decisions.

Applicant screening is the process of reviewing job candidates to determine qualifications and fit for a role. It may include resume review, skills testing and background checks.

Auto disqualify is a feature in recruiting software that removes applicants who do not meet required criteria. It uses preset rules based on job qualifications or knockout questions.

A 1099 contractor is a self-employed worker hired to provide services to a business. They are not on payroll and typically receive a 1099-NEC form to report income for tax purposes.

Form 1099-NEC reports non-employee compensation paid to independent contractors. Businesses must file it with the IRS and send a copy to each contractor paid $600 or more in a calendar year.

An Affirmative Action Plan is a written program required for certain federal contractors to promote equal employment opportunity. It outlines workforce goals and reporting requirements.

An AI job ad generator uses artificial intelligence to create role descriptions from inputs like skills and duties. It saves time, improves consistency and helps attract qualified candidates.

AI-powered candidate matching uses machine learning to compare applicant data with job requirements. It helps rank candidates by fit to improve speed and accuracy in hiring decisions.

Applicant screening software helps employers evaluate candidates by automating resume reviews, filtering based on set criteria and highlighting applicants who meet job qualifications.

An applicant tracking system is software that manages job postings, applications and candidate data during the hiring process. It helps teams organize, track and move applicants efficiently.

An audit trail is a recorded history of all changes, transactions or updates made within a system. It helps organizations maintain accuracy, accountability and compliance in financial and HR records.

Automated Clearing House (ACH) is a network that moves money electronically between bank accounts. It is commonly used for payroll direct deposits and recurring vendor payments.

Automated job alerts notify candidates when new job postings match their preferences or search criteria. These alerts help keep applicants engaged and increase visibility for open roles.

A behavioral assessment measures how a candidate is likely to act in workplace situations based on traits or responses. It helps evaluate alignment with role expectations and team dynamics.

The benefits enrollment process allows employees to choose health and other benefit plans. It includes reviewing options, making selections and submitting them by a set deadline.

A bonus is a one-time payment given to an employee as a reward for performance, milestones or company results. It is separate from base pay and not tied to regular compensation.

A candidate-focused hiring process prioritizes clarity, speed and communication throughout each stage. It improves the applicant experience and helps attract qualified talent.

A career site is a branded web page where employers post job openings and share company information. It helps attract applicants, promote employer brand and support the online application process.

A cognitive assessment measures a candidate’s reasoning, problem solving and learning ability through structured testing. It helps evaluate capacity to perform job related tasks.

Commission is pay based on sales or specific outcomes, often used in roles tied to revenue. It serves as an incentive and varies based on individual or team performance.

Contingent work refers to non permanent roles like contractors, freelancers or temp workers. These workers are typically hired for specific projects and are not part of regular payroll.

A cost center is a department or function where specific expenses are tracked for budgeting and reporting. It helps organizations assign and manage costs by area or team.

Decentralized human resources management distributes HR responsibilities across departments or locations. Local teams manage hiring, onboarding and compliance with guidance from central HR.

Understand how deductions reduce employee pay through taxes, benefits and other withholdings. Learn how required and voluntary amounts are applied and how they impact payroll accuracy and compliance.

Direct deposit is an electronic payment method that transfers funds directly into an employee’s bank account. It is commonly used by employers for payroll and reimbursements.

Diversity and inclusion refer to organizational efforts that ensure fair treatment and representation of all employee groups. These practices impact hiring, retention and workplace culture.

Employee onboarding is the process of integrating new hires into an organization. It includes completing required paperwork, training and system access to help employees start effectively.

A reference check verifies a candidate’s past employment, performance and professional conduct. It helps employers confirm qualifications and reduce hiring risk before finalizing an offer.

A referral program encourages employees to recommend qualified candidates for open roles. Organizations often offer incentives when a referred candidate is hired and meets performance milestones.

Employee Self-Service (ESS) is a feature in HR systems that allows employees to view and manage their personal information. It often includes access to pay stubs, benefits and time off.

Employee turnover is the rate at which employees leave an organization within a given period. It measures retention trends and helps identify hiring, engagement or management issues.

Employer taxes are payroll taxes businesses pay beyond employee wages. They include federal and state employment obligations, such as unemployment taxes and the employer portion of payroll taxes.

Employment background checks verify a candidate’s work history, education and criminal records before hire. They help employers confirm qualifications and assess potential risk.

An employment credit check reviews a candidate’s credit history during the hiring process. It is used for positions involving financial oversight or access to sensitive information.

E-Verify is a federal program that checks whether newly hired employees are authorized to work in the United States. It confirms identity and work eligibility using I-9 data.

The EEOC is the federal agency that enforces laws prohibiting workplace discrimination. It handles complaints and monitors employer compliance with equal opportunity requirements.

An exempt employee is paid a salary and not eligible for overtime under wage laws. Status depends on duties performed and meeting minimum salary and classification requirements.

Expense management is the process of tracking and controlling employee business spending. It helps organizations manage costs, enforce policies and improve financial visibility across operations.

Federal income tax is a mandatory tax withheld from employee wages by employers and paid to the IRS. The amount depends on earnings, filing status and withholding elections.

FICA is a federal payroll tax that funds Social Security and Medicare benefits. Employers and employees each contribute a set percentage of wages based on IRS requirements.

FUTA requires employers to pay a federal tax used to fund unemployment benefits. It applies to the first portion of each employee’s annual wages.

A flexible working environment gives employees control over how they manage their work schedules. It can include remote work, flexible hours or location independence based on role.

Form 941 is the IRS form employers use to report income taxes, Social Security and Medicare taxes withheld from employee wages. It is filed quarterly and includes employer tax contributions.

Form I-9 is a federal document used to verify an employee’s identity and authorization to work in the United States. Employers must complete and retain it for all new hires.

A garnishment is a legal order requiring an employer to withhold part of an employee’s wages to pay a debt. This may include unpaid taxes, child support or other obligations.

A general ledger (GL) is the central recordkeeping system for a company’s financial data. It organizes transactions by account to support reporting, reconciliation and audits.

Ghosting applicants occurs when candidates stop responding during the hiring process without notice. It disrupts recruiting efforts, delays hiring timelines and impacts candidate experience.