Wages refer to the total earnings an individual receives for performing work or services. This includes payment made in various forms such as hourly rates, salaries, bonuses, commissions, or even non-cash compensation that holds monetary value.
Understanding How Wages Work
Wages are typically based on time worked and are often described in terms of hourly compensation or yearly salary. Hourly employees generally record the hours they work by clocking in and out, and their pay varies depending on the number of hours completed in each pay period.
If an hourly employee works over 40 hours in a given week, they are usually eligible for overtime compensation at a higher pay rate. On the other hand, salaried workers, who are often classified as exempt, tend to receive a fixed amount each pay period and are not required to track hours or qualify for overtime.
Various wage types exist, such as the legally mandated minimum wage, as well as the living wage, tipped wage, and fair wage.
With Beyond, employers can efficiently manage all types of wage structures, ensuring accuracy and compliance with labor laws.