Human Resources Glossary - P

Paid Holidays

This refers to the legally mandated benefit an employer provides its employees during holidays.

Paid Time Off

Refers to the policy in most companies that allows employees to accumulate sick days vacation days and personal days for use as needed or desired.

P and L Statement

Also called a Profit and Loss Statement. Refers to the financial statement that summarizes a company’s revenues cost and expenses during a specific period.

Part-Time Hours

A standard time set by the employer for employees who work less than the required full-time hours.

Partial Pay

This refers to the payment less than the full amount to be received by the employee.

Passive Candidate

Someone under consideration for a position by an employer who is not actively looking for work.

Pay Calculation

The formula used to determine an employer’s gross to net income.

Pay Group

A group of employers who are grouped together for payroll processing.

Pay Period

Refers to the time period used to compute earned wages and determine when employees get paid.

Payroll Activities

Consist of record keeping new employee reporting check processing state and local tax compilation and payments.

Payroll Deduction

This refers to the amount deducted from an employee’s gross pay to cover taxes and benefits like health insurance.

Payroll Service

A service provider that handles payroll calculations payroll tax statements and year-end taxes.

Payroll Software

An application that controls automates and manages employee payments.

Payroll Tax Rates

Deductions made from an employee’s paycheck for federal income tax state income tax Social Security and Medicare.

Pay Stub

A record of an employee’s wages contributions and deductions.

Patient-Centered Outcomes Research Institute (PCORI) Fees

Fees paid by the employer or health insurance company to fund the research institute. 

Per Diem

Latin for “for each day”. A daily allowance an employer provides an employee to pay living expenses while an employee is traveling for business.

Performance Improvement

This refers to the strategy that helps employees achieve better performance and growth.

Performance Management

The process of making sure activities and outputs are achieved effectively and efficiently.

Performance Review

A formal evaluation of an employee's performance at work.

Permanent Contract

A contract that has no end date and is in effect until it is terminated by either the employer or the employee.

Personal Income Tax

A tax on an employee’s earnings.

Pre-Tax Deduction

Taken out of an employee’s income before any taxes are deducted.

Preferred Provider Organization

A specific kind of health plan that contracts with physicians and hospitals to build a network of participating medical providers.

Prior Period Adjustment

A change to the time compensation or classification that was reported on an employee's previous payroll.

Probationary Period

Refers to the trial period for newly hired or recruited employees.

Professional Employer Organization

An outsourcing firm that provides services to small and medium-sized companies.

Proof of Insurance

A record that certifies someone is protected by an insurance policy.