Glossary of Terms
401(k) Plan
A 401(k) plan is a type of employer-sponsored retirement plan that allows the employee
to save for retirement by contributing a percentage of their pay in an investment
plan of their choice. Contributions may be on an after-tax or pretax basis.
Administrative Services Outsourcing (ASO)
ASOs offer businesses transaction-based human resources services such as support
with payroll, benefits, and employee data management. Advantec’s ASO operates as
an extension of your human resources department by providing you with a complete
range of HR administrative services through the efficiency of our integrated human
resource information system.
Advantec OnDemand
Advantec OnDemand is a PeopleSoft®-powered website created for Advantec clients
and their employees. Advantec OnDemand delivers a flexible and scalable human resource
information system (HRIS). This allows Advantec’s clients to manage payroll and
human resources without the associated financial investment in the software.
Affirmative Action (AA)
A practice in which employers evaluate workforce imbalances and take proactive measures
to correct the lack of protected worker classes.
Americans with Disabilities Act (ADA)
Act that prohibits discrimination based on physical or mental disability; mandates
that companies make reasonable accommodations for individuals who are physically
or mentally challenged unless there is undue hardship.
Age Discrimination in Employment Act (ADEA)
Act that determined that older employees may not be discriminated against by performance-based
pay systems.
Alternate Dispute Resolution (ADR)
Term describing a number of conflict, grievance and dispute resolutions. In general,
any means of resolving disputes that does not involve going to court.
American Federation of Labor (AFL)
A group started to insure equality and freedom of voice to workers within a union.
Administrative Law Judge (ALJ)
A judge who oversees formal procedures for OSHA offenders.
Advantec OnDemand (AO)
PeopleSoft-powered website created for Advantec clients and their employees. Advantec
OnDemand delivers a flexible and scalable state-of-the-art human resource information
system (HRIS). A means to manage payroll and human resources without the associated
financial investment as well as a method to manage employee data through the computer
desktop and generate vital management reports.
Agency Solutions International, Inc. (ASII) Advantec’s parent company.
Administrative Services Outsourcing or Administrative Services Only (ASO)
Business Process Outsourcing (BPO)
Business Process Outsourcing is the outsourcing of technology or specialist processes
in order to gain knowledge-based efficiencies. There is usually a certain degree
of risk that is transferred to the BPO in order to perform these functions, and
the BPO will usually include software access, process management, and people to
operate the service.
Client Service Agreement (CSA)
The agreement document between Advantec and a client company.
COBRA
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, is a law that which
mandates that employees and their immediate families must have an option to continue
health insurance coverage if a “qualifying event” causes them to lose coverage after
employment ends.
Compliance
Compliance is the process of adhering to government laws and regulations in order
to avoid significant fines and penalties and foster ethical behavior. Advantec offers
training to our clients, which assists our clients in maintaining their federally
mandated compliance. Areas of compliance that are federally mandated include sexual
harassment and discrimination.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Act that provides for continuation of group health care benefits for former employees
and their families.
Cost-of-Living Adjustment (COLA)
Pay adjustment awarded to employees regardless of their performance or company performance;
usually associated with a rise in the cost of living; another term for this is a
standard percent raise.
Consumer Price Index (CPI)
A means of measuring the change for costs of goods and services.
Customer Relationship Management (CRM)
Customer Relationship Management, or CRM, is used by businesses to manage their
relationships with clients. Information is stored on potential and existing clients
and is analyzed to delineate trends and preferences. This allows the business to
more effectively target and respond to their consumers.
Direct Deposit (DDP)
The direct input of earned wages from an employer to an employee’s desired bank
account.
Economic Growth and Reconciliation Act (EGTRRA)
Act that adjusts certain minimum vesting schedules, increases retirement plan compensation
and contribution limits, allows catch-up contributions by participants older than
50 in select retirement plans, and modifies distribution and rollover guidelines.
Employee Assistance Programs (EAP)
Company-sponsored programs, delivered by licensed professionals, that offer a variety
of counseling services to employees who are experiencing emotional, physical or
personal issues.
Employee at Worksite (EE)
An employee who works on the premises of a client company.
Equal Employment Opportunity Commission (EEOC)
A federal agency that was created to insure equality and fair treatment within the
workplace.
Employee Retirement Income Security Act (ERISA)
Act that established the basic uniform standards that must be met by employer-sponsored
pension, health and welfare benefit programs.
Employee Stock Ownership Plans (ESOP)
Enables employees to earn bonuses of stock, allowing them to gain a degree of ownership
in the company for which they work.
Employee Involvement (EI)
A way of linking the shared interests of the individual worker and the company for
the organization’s benefit.
Employment Practices Liability Insurance (EPLI)
EPLI is an offering through an insurance company to provide assistance and services
in the event that an employer is sued by employees alleging harassment, wrongful
termination or unfair practices in the workplace.
Fair Labor Standards Act (FLSA)
Act that regulates employee overtime status, child labor, minimum wage, overtime
pay, recordkeeping and other administrative concerns.
Family Medical Leave Act (FMLA)
Act that provides employees with the opportunity to take up to 12 weeks of unpaid
leave to take care of family or a medical condition.
Federal Insurance Contributions Act (FICA)
An act that provides for a federal system of old age insurance and health insurance.
Federal Labor Relations Authority (FLRA)
An independent commission whose primary responsibility is to administer components
of the Civil Service Reform Act of 1978.
Federal Mediation and Conciliation Act (FMCS)
Offers assistance in contract settlement and helps to maintain a list of arbitrators
to help interpret contract language and settle conflicts and disputes.
Federal Unemployment Tax Act (FUTA)
Authorizes the IRS to collect a federal employer tax; this tax is used to fund state
workforce agencies.
Flexible Spending Accounts (FSA)
An FSA is a tax-exempt account to which employees contribute funds to use toward
healthcare services including medical co-pays, dental co-pays, prescriptions, and
other related expenses.
Florida Association of Professional Employer Organizations (FAPEO)
The FAPEO is an organization that represents Professional Employer Organizations
in the state of Florida. FAPEO holds annual conferences to address issues in the
PEO industry, and has an active role in legislation regarding industry concerns.
Highly Compensated Employee (HCE)
A worker who is designated as a highly compensated employee is an individual who
may own at least 5 percent of the company and/or earn a high salary.
Health Insurance Portability and Accountability Act (HIPAA)
Act that made changes to improve healthcare coverage portability and accessibility.
Health Maintenance Organization (HMO)
A type of health care that provides services for a fixed period on a pre-paid basis.
Health Savings Account (HSA)
An HSA is associated with a High Deductible Health Plan (HDHP), and is a special
savings account, owned by the employee, where contributions are made to accommodate
current and future medical expenses.
Human Capital Advisor (HCA)
A representative of one of Advantec’s network of insurance agencies who educates
prospects on the Advantec value proposition.
Human Capital Consultant (HCC)
A Human Capital Consultant is an Advantec human resource specialist, who assists
clients with a variety of HR-related needs provides individual, dedicated attention.
Human Capital Generalist (HCG)
Advantec’s human resource generalist who assists clients with a variety of HR-related
needs.
Human Capital Management (HCM)
Human Capital Management is the disciplined management of a company’s employees,
resulting in decreased turnover, enhanced productivity, and increased revenues if
implemented successfully.
Human Resource Business Process Outsourcing (HR BPO)
HR-BPO, Human Resources Business Process Outsourcing, is the hiring of an outside
firm to handle all or part of an HR process or function. Advantec supports companies
through our HR-BPO solutions, helping them attract the best talent, grow and retain
their employee base, administer payroll, tax, and benefits, and manage risk, unemployment
administration, workers' compensation and legal compliance.
Human Resource Development (HRD)
A program designed by a company that provides its employees with the skill sets
necessary to meet current and future organizational needs.
Human Resource Information System (HRIS) or Human Resource Management System
(HRMS)
A technology system that enables a company to store, maintain, and retrieve important
human resource data.
Human Resource Management (HRM)
The design and implementation of systems, processes, and procedures within a company
that helps harness human talent efficiently and effectively to accomplish company
goals.
Human Resource Outsourcing (HRO)
In a Human Resources Outsourcing (HRO) solution, Advantec delivers the people, process
and technology needed to perform a complete HR process, by executing the essential
transactions and responding to requests from employees and managers via web chats,
telephonic support or rich, personalized on-line content.
Immigration Reform and Control Act (IRCA)
An act that prohibits discrimination against prospective applicants based on their
national origin or citizenship. This act also provides for penalties for hiring
illegal aliens.An act that prohibits discrimination against prospective applicants
based on their national origin or citizenship. This act also provides for penalties
for hiring illegal aliens.
Incentive Stock Option Plans (ISP)
Stock offered to employees as an incentive to remain with the company.
Individual Retirement Account (IRA)
A tax-deferred savings/retirement account to which an individual can contribute
a yearly maximum amount.
Labor Management Relations Act (LMRA)
An act that balances the power between a union and company management by making
union unfair labor practices against the law; also called the Taft-Hartley Act.
Labor Management Reporting and Disclosure Act (LMRDA)
An act that serves to protect union members’ rights from corrupt or discriminatory
unions; also called the Landrum-Griffin Act.
Long-term Disability (LTD)
A type of health care coverage that replaces a portion of an injured or ill worker's
lost income after short-term disability (STD) coverage terminates; may be combined
with Social Security disability.
Lump-sum Increase (LSI)
One-time performance bonus paid to an employee.
Mental Health Parity Act (MHPA)
Act that addresses parity between mental health benefits and medical benefits.
National Association of Professional Employer Organizations (NAPEO) (a trade
association)
NAPEO, the National Association of Professional Employer Organizations, is the largest
trade association representing more than 325 professional employer organizations
(PEOs) nationwide. NAPEO's members represent more than 70% of the industry's revenues
and range in size from start-up PEOs to large, publicly held companies. NAPEO provides
its members with educational services and business resources including conferences,
seminars, a monthly magazine, online services, marketing support and more. NAPEO
also embraces a commitment to furthering and protecting the interests of its PEO
members at all levels of government through proactive lobbying efforts and timely
communications on regulatory and legislative issues of interest. (Courtesy of the
National Association of Professional Employer Organizations)
National Institute for Occupational Safety and Health (NIOSH)
An agency that delivers health and safety information on request.
National Labor Relations Act (NLRA)
Protects the rights of employees to organize without being hampered or restrained
by management; also known as the Wagner Act.
National Labor Relations Board (NLRB)
An organization that conducts union representation elections and investigates unfair
labor practices.
Occupational Safety and Health Administration (OSHA)
An agency that is part of the Department of Labor; this organization administers
and enforces the Occupational Safety and Health Act of 1970. OSHA continues to deliver
and enforce standards relating to the health and safety of workers across the United
States.
Occupational Safety and Health Review Commission (OSHRC)
The organization that provides rulings on contested OSHA citations.
Older Workers’ Benefit Protection Act (OWBPA)
Act that amended the ADEA to include all employee benefits; also provided terminated
employees time to evaluate group termination or retirement programs or time to consult
with an attorney.
Omnibus Budget Reconciliation Act (OBRA)
Act that reduced the compensation limits in qualified retirement programs.
Organizational Development (OD)
A means by which an organization enhances its effectiveness and the well-being of
its employees through planned activities and interventions.
Professional Development
Professional development refers to training and education of a company’s employees,
in order to improve the human capital resource within a company and align employees
with business objectives. Advantec offers a variety of courses to support Professional
Development.
Professional Employer Organization (PEO)
A PEO is one of several business process outsourcing solutions offered by Advantec.
PEOs support your business through co-employment, a key difference from an Administrative
Services Offering (ASO) or a Human Resources Outsourcing (HRO).
Premium-Only Plans (POP)
A type of Section 125 plan that enables workers to fund certain qualified benefits
with pre-tax monies.
Paid Time Off (PTO)
A bank of time that consists of all of an employee’s paid time off (such as vacation,
sick time, holidays, etc.) that employees can use as necessary.
Realistic Job Previewing (RJP)
Any part of the selection process that provides an applicant with honest and complete
information about a job and the work environment.
Reductions in Force (Layoffs) (RIF)
When a company releases an employee from his or her job.
Retirement Equity Act (REA)
Act that provides certain legal protections for spouse beneficiaries of qualified
retirement plans.
Return On Investment (ROI)
A calculation that companies use to demonstrate-financially and otherwise-the investment
made on a particular program or endeavor versus the return (or end result) the company
is able to attain.
Risk Assessment
A risk assessment is a comprehensive analysis that Advantec offers to clients, in
order to review risk exposures and provide solutions for mitigating that risk.
Risk Control Consultant (RCC)
A Risk Control Consultant is an Advantec specialist that provides loss control,
safety and health consulting services.
Short-term Disability (STD)
A type of health care coverage that replaces a portion of an injured or ill worker's
lost income for a specified period of time.
Simplified Employee Pension (SEP) An account, which is tax-deferred,
to which self-employed persons and employees of very small businesses can contribute.
Small Business Job Protection Act (SBJPA)
Act that made changes to rules regarding the ability of tax-exempt organizations
to institute retirement plans modeled after 401(k) and IRA accounts and the definition
of highly compensated employees.
Society for Human Resource Management (SHRM)
A Risk Control Consultant is an Advantec specialist that provides loss control,
safety and health consulting services.
Subject Matter Expert (SME)
Person who is well versed, or is an expert, in a particular area.
Supplemental Unemployment Benefits (SUB)
Benefits that are paid to employees without jobs that goes further than required
government unemployment benefits.
State Unemployment Insurance (SUI)
Provides unemployment benefits to eligible workers who are unemployed through no
fault of their own and meet other state eligibility requirements.
Threaten, Interrogate, Promise, or Spy (TIPS)
A term used by labor management attorneys and consultants that relates to the unfair
labor practices a managers or supervisor can encounter - as in Don't Threaten, Interrogate,
Promise, or Spy.
Theory of Constraints (TOC)
A management philosophy that helps improve companies by suggesting that every organization
is held back by constraints stemming from internal policies and procedures.
Third-party Administrator (TPA)
A health care plan in which the employer takes on the risk of higher health care
costs and hires an independent claims department to administer claims.
Taxpayer Relief Act (TRA)
An act that created a means for taxpayers to realize tax-advantaged savings, including
Roth IRAs and Education IRAs
Unemployment Compensation Amendments (UCA)
Amendments that imposed a required 20% federal income tax withholding on qualified
retirement plan proceeds that an individual intends to roll over into another retirement
plan or retirement account.
Unfair Labor Practice (ULP)
A violation of a legal right under labor relations statutes.
Uniformed Services Employment and Reemployment Rights Act (USERRA)
An act that requires continuation of benefits and crediting of service while the
employees is actively serving in the military.
Voluntary Protection Program (VPP)
A group of voluntary employers who promotes safety and health programs.
Worker Adjustment and Retraining Notification Act (WARN)
A mandate that requires some employers to provide a minimum of 60 days’ notice if
a plant or factory is to close or if mass layoffs are imminent.
Workers’ Compensation (WC)
Insurance paid for by employers that provides cash benefits and medical care if
an employee becomes disabled because of an injury or sickness related to the employee’s
job.
Worksite Employee (WSE)
An employee who works on the premises of a client company.
Work Opportunity Tax Credit (WOTC)
An income tax credit that encourages companies to hire people from certain groups.
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