Human Resources Glossary - N


Nepotism is when those in authority give preferential treatment to people they know, usually their relatives and friends. Offering the favored person a position, giving them more and better possibilities within the organization, or raising their pay or benefits are a few examples of this preferential treatment.

Net Pay

After all deductions and withholdings have been made, the employer issues the employee’s or non-employee contractor’s net pay. Net pay is the total gross pay or earnings less any deductions. Since the recipient receives the money to spend as they see fit, net pay is also known as net income or “take-home” pay.

Both voluntary and involuntary deductions, such as federal and state income taxes, Medicare and Social Security taxes, and wage garnishments, impact net pay. Voluntary deductions include healthcare premiums, retirement fund contributions, and HSA payments. Employees can see an itemized summary of these deductions on a properly structured pay stub that comes with their paycheck.

New Hire Report

A new hire report is information sent to a US state regarding a new or previously employed employee in that state. The person may be new to you or have previously worked for you but hasn’t been an employee for at least 60 days. The recruiting company submits a new hire report containing a few essential pieces of data on the individual. It must be delivered no later than 20 days following the date of hire, which is the first day the person begins working for pay.

Non-Discrimination Testing

Non-discrimination testing is a group of IRS-mandated examinations that assess the fairness of a company’s benefit programs. These tests make benefit plans and the business matches and tax deductions that go with them more egalitarian and available by ensuring highly compensated employees stay within a benefit contribution rate that lower-compensated employees can match.

Non-Qualified Plans (W-2)

An employer-sponsored, tax-deferred retirement savings plan is a non-qualified plan on a W-2. They are not qualified since they are excluded from ERISA regulations and the testing demands of qualified retirement savings plans, making them non-qualified. A non-qualified plan serves as a tool for attracting and keeping specific employees, primarily top leaders, by catering to their specialized demands.

Non-Resident Alien

An individual who is not a US national or citizen is referred to as a non-resident alien. This is because they have not obtained permanent resident status or passed the Green Card or substantial presence tests. A non-resident alien recently arrived on a J-1 or F-1 visa. Additionally, until they pass the substantial presence requirement, students with these visas will continue to be categorized as non-resident aliens. For tax reporting purposes, this classification is a crucial distinction.

Notice Period

The amount of time before your departure from a company that your employer is informed of is known as a notice period. In essence, it begins when you turn in your letter of resignation and concludes when you leave your job. It’s customary to give your employer a few weeks’ notice when quitting a job so they can make preparations.

Nudge Theory

Nudge theory is an idea that has its roots in behavioral research. It involves using gentle guidance rather than force to encourage people to choose or take a particular action.