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Payroll Glossary - N
NACHA: NACHA, The Electronic Payments Association.
National Medical Support Notice (NMSN): Order issued by a state child support agency to an employer obligating the employee's child be enrolled in medical insurance coverage provided by the employer (if available) and that an amount be withheld from the employee's payroll to pay insurance premiums for such coverage.
Negative Account Employer: An employer whose state unemployment tax (SUI) payments are less than the benefits charged to its unemployment reserve account.
Net Pay: That part of an employee's wages that remains after all deductions voluntary or invountary have been deducted (e.g., taxes, health insurance premiums, union dues, etc.)
New Hire Reporting: The reporting of newly hired and/or rehired employees to state governmental agencies to help with the collection of child support and/or to uncover abuse in the state's unemployment compensation, workers compensation, or public assistance programs.
No-Additional-Cost Services: A nontaxable fringe benefit for employees consisting of free services offered by the employer at no substantial additional cost to the employer.
Nonaccountable Plan: An employer's business expense reimbursement plan that doesn't meet requirements regarding business connection, substantiation, and returning excess amounts. Payments made under the plan are included in employees income and taxable.
Noncash Fringe Benefits: Benefits provided to employees in a form except cash (e.g., company automobile, group health and life insurance, company parking facility, etc.), which may or may not be taxable.
Nondiscrimination Testing: Tests to tell whether certain benefit plans provided by the employer discriminate towards the favor of highly compensated or key employees. If such discrimination is found, the employer will lose its favorable tax treatment for the benefit. Benefits provided under the plan may be taxable to employees receiving them.
Nonexempt Employees: Employees who are covered by the minimum wage and overtime provisions of the FLSA. They may be paid either on an hourly or salary basis.
Nonqualified Plan: In the context of employee benefits, an employer plan that does not meet Internal Revenue Service qualification requirements.
Nonqualified Stock Option (NSO): See Nonstatutory Stock Option..
Nonresident Alien: An citizen from a foreign country working in the US who does not pass either the green card or 'substantial presence' residency test, but is subject to federal income tax on US source income.
Nonstatutory Stock Option (NSO): A stock option arrangement that gives employee's the rights to buy the employer corporation's stock at a fixed price for a certain period of time, without the conditions that apply to an incentive stock option.
Normal Credit: The amount of an employer's contributions, which were paid timely, into a state unemployment insurance fund, to a maximum of 90% of the employer's basic federal unemployment tax rate, taken as a credit reducing the employer's federal unemployment tax (FUTA).
Normal Retirement Age: Currently 65 and 2 months, the age when retirees may receive full social security benefits. Individual company retirement plans may use a different age.