Conpensation Type

Question 0

What are they 8 types of wages/salary?

Answer 0

1. Regular
2. Overtime
3. Bonus
4. Commission
5. Holiday
6. Vacation
7. Sick
8. Piecework

Question 1

What are the four types of compensation?

Answer 1

1. Wages/ salary
2. Other earnings
3. Other items
4. Disability payments

Question 2

What is consider regular wage?

Answer 2

Regular earnings, or wages, are defined as amounts paid by the employer for a pay period at an hourly rate or in a predetermined fix amount, commonly referred to as a salary

Question 3

What is considered overtime?

Answer 3

This is the employees’ rate of pay multiplied by an overtime factor (usually 1.5 or 2.0) The overtime rate is multiplied by the number of overtime hours worked to calculate the overtime earnings

Question 4

What is considered a bonus?

Answer 4

Amounts that are paid to an addition to his regular wages. It may be a separate check or an additional amount on a regular paycheck. Paycheck can be both discretionary (Xmas bonus) or non discretionary (part of an agreement or contract)

Question 5

What is considered a commission?

Answer 5

Sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. A commission may be paid in addition to a salary or instead of a salary

Question 6

What is considered a holiday wage?

Answer 6

Paid time off for federal holidays or state holidays where the employee does not report to work

Question 7

What is considered a vacation wage?

Answer 7

Income earned by an employee while taking off from work

Question 8

What is considered a sick wage?

Answer 8

Earnings paid to an employee who calls in sick. These amounts are normally not governed by a set plan

Question 9

What is considered piecework?

Answer 9

Amount an employee is paid for each piece or product produced

Question 10

What are three types of OTHER EARNINGS?

Answer 10

1. Charge tips
2. Cash rewards
   3: employer provided/ educational assistance

Question 11

What are charge tips?

Answer 11

Tips and gratuities paid through the employer as part of the customers credit card charge payments

Question 12

What is considered cash awards?

Answer 12

Includes any amount of cash disbursed above and beyond an employees regular wages. Usually given in recognition of outstanding performance or milestones, but are not part of any establishment bonus programs.

Question 13

What is employer-provided/educational assistance?

Answer 13

Payments made by The employer for employees educational expenses (including tuition, fees, and similar expenses; books, supplies and equipment)

Question 14

What are three types of OTHER ITEMS?

Answer 14

1. Cash tips
2. PUCC (personal use of company car)
3. Employer 401k Match

Question 15

What are cash tips?

Answer 15

Tips that an employee receives while working in a cash form. The full amount of tips an employee receives is considered taxable and must be reported as such

Question 16

What is PUCC? (Personal use of company car)

Answer 16

Considered a taxable fringe benefit to the employee. Provides a car to use for business, it is important that the employee maintains records that support business versus personal use of the car

Question 17

What are disability payments (aka short and long term disability payments)

Answer 17

Payments that are defined as any amount paid to an employee that is:

1. Under a plan in which the employer takes part and
2. In place of wages for any period of temporary absence due to non-job related sickness or injury

(Employee is typically paid by a third party, such as an insurance company or agency)