PAYRROL GLOSARY

ACCOUNTING: Accounting is the social science that

deals with studying, measuring and analyzing financial assets and financial affairs of a business or organization, in order to facilitate decision making within it and the external control presenting information previously recorded systematically and useful for different stakeholders.

BACKUP: A backup in information technology and computing

is a copy of the original data is performed in order to have a means of recovery from a loss. Backups are useful to different events and uses: computer systems recover and data from a computer attack or natural disaster; restore a small amount of files you may have accidentally deleted, corrupted, infected by a computer virus or other causes; storing historical information more cheaply than hard disks and also allowing the transfer to locations other than the original data; etc.

BASIC SALARY: It is the ordinary remuneration agreed in

the labor contract and it is the basis for the settlement of night work, work on Sundays and holidays and extra work on ordinary days.

BONUSES: It is an incentive that is offered on

occasions to workers as a token of thanks for a job well done or accomplished a goal, this is not part of the wage factor.

CONTRACT OF INDEFINITE DURATION: It is set out for an indefinite period,

employee is guaranteed to hold the post as long as the work continues. It could be terminated if the work ceases, for employee or (fair/unfair) employer’s volition or both.

COMMISSIONS: It is a percentage over the total sales,

which the employer pays to the sellers, in no case the worker total earned can be lower than the minimum monthly wage each year.

Commission= amount of sales* sales percentage.

COMPENSATION: Compensation of employees is defined

as the total remuneration- both wages and salaries and supplements of them, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period.

COMPENSATIONS: The compensation (wages, salaries,

benefits) is the reward that employees receive in exchange for their work, is the element that allows the company to attract and retain the human resources needs, and employee meet materials needs, safety, ego or status. That is, any payment in cash or in kind, which the organization rewards those who work in it.

EMBARGO: it is the judicial declaration that certain

rights of content or economic value are affected or reserved to extinguish them and declared a pecuniary obligation (executive embargo) or that is expected to be declared in a future judgment (preventive embargo).

EMPLOYMENT CONTRACT: It is an agreement between an employer

and employee specifying terms and conditions under which a person consents to perform certain duties as directed and controlled by an employer in return for an agreed upon wage or salary.

FIXED-TERM CONTRACTS: It is an employment contract by which

an employer recruits an employee for a limited period of time. Such contracts are possible only to perform a specific, temporary task, and only in those cases set out by law.

IN-KIND WAGE: It is every part of the normal and

permanent remuneration which receive the worker as the direct service compensation, such as alimentation, habitation or wardrobe which the employer gives for the employee and his family.

LOAN: The act of giving money, property or

other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges.

MINIUM WAGE: It is the lowest hourly, daily or monthly

remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labor.

NET PRICE PAID: It is that the employee actually receives.

The result of subtracting the total deductions due.

NORMAL DAY: It is the normal time which the worker

works, it is the agreement of the employee and employer, but it cannot exceed the maximum legal time (8 hours daily); (48 hours weekly).

OVERTIME: It is the time which overcomes the

normal day, and in any case it excels the maximum legal.

PAYCHECK: It is a paper document issued by an

employer to pay an employee for services rendered.

PAYMENT: A payment is the transfer of an item of

value from one party (such as a person or company) to another in Exchange for the provision of goods, services or both, or to fulfill a legal obligation.

PAYROLL CONTRIBUTIONS: The accrual corresponds to all the

concepts that a worker receives a remuneration, such as wages, overtime, commissions, help of transportation, night and daytime charges, etc. The sum of these values conforms to what is called total accrual, that is the totality of income that an employee receives as compensation for their work.

PAYROLL LIQUIDATION : The payroll is a document where a

company related wages, deductions, paid net worth, payroll taxes and appropriations of workers who have worked in a given period, either weekly, decade, fortnight or month.

PAYROLL TAXES: All employers must liquidate over their

monthly payroll the payroll taxes to ICBF, SENA, family compensation fund (CCF) and occupational hazards.

PROBATIONARY PERIOD: It is the initial period of employment,

during which the supervisor carefully considers whether the employee is able to meet the standards and expectations of the job. The probationary period is intended to be used to determine whether the right employee has been hired for the job.

SALARY ADVANCE: It is salary-based temporary overdraft

facility which enables staff of private companies and government agencies access 50% of their net monthly salary in advance.

SEVERANCE PAY: Annually compensation equivalent to a

month of salary by each year worked, that an employer provides to an employee who has been laid off, whose job has been eliminated, who through mutual agreement has decided to leave the company, or who has parted ways with the company for other reasons.

SOCIAL SECURITY: Social security, also called social

insurance, primarily refers to a field related to social welfare and social protection coverage socially recognized needs, such as health, old age or disability.

SOLIDARITY FUND: The Pension Solidarity Fund (FSP) is a

special account of the Nation, which has no legal status under the Ministry of Social Protection, designed to subsidize pension contributions of population groups whose characteristics and socioeconomic conditions do not have access to social security systems and the provision of financial subsidies for the protection of people in extreme poverty.

SUBSTANTIVE LABOR CODE: Work regulated by this Code is any free

human activity, whether material or intellectual, permanent or temporary, that an individual executes to the service of another, and whatever is their purpose under a contract of work.

SURCHARGE: Refers to charges to be paid on the

regular time, because of working at night. The surcharge will be 35% of the ordinary time as stipulated in paragraph 1 article 168 of the Substantive Labour Code.

TRANSPORTATION ASSISTANCE: it is a figure created by Law 15 of 1959

and regulated by Decree 1258 of 1959, in order to subsidize the cost of mobilizing employees from home to the workplace, which for 2014 is of $ 72,000.

UNEMPLOYMENT SUBSIDY:

The unemployment subsidy is a support given by the family welfare fund, for once in a lifetime, to persons who have lost their jobs. This benefit is equal to 1.5 (one and a half) current legal minimum wage, payable in six equal monthly dues, represented in food bonus, health or education. A subsidy in kind, by an amount equivalent to 1.5 current legal minimum wage, redeemable in food, health or education to the beneficiary's choice. This benefit will be paid in 6 equal dues, one each month.

WAGE ELEMENTS: The following elements belong to the

wage: sticky wage, in- kind wage, overtime, work in rest days and the commission percentage.

WARRANT: The warrant is a portfolio collection

mechanism where the debtor authorizes the employing entity will be deducted from your monthly or biweekly payroll specified sum.

WELFARE BENEFITS: It is the set of additional benefits to

salary provided by law for workers to contribute to their welfare.

THANKS FOR WACHING ASSESSOR: SAMUEL FUENTES SANGUINO JULIAN CASTAÑEDA BELTRAN

KENWOOR LUBRICANTES CALLE 110 # 23C – 09 FONTINBÓN