Question

Wages are usually paid by the hour. Salary is usually a form of fixed compensation. Bonuses are a form of compensation obtained if certain criteria are met. Bonuses paid within two and a half months of year-end are included in employee's compensation in the year they were earned.

Answer 1

Answer:

True

Explanation:

1. Usually wages are paid by the number of hours spent working.

For example, someone who works as a warehouse supervisor may be paid hourly for the amount of time spent on the job.

2. Salary is usually the amount paid for services rendered, it is valued in cash, and does not include non-cash compensation like medical insurance.

For example, a person may be paid $15,000 (fixed amount) each month not necessarily considering the number of hours spent on job.

3. Bonuses are categorised under non cash compensation, because they are benefits added to employee's salary such as:

Annual bonuses or commissions, life insurance etc.

True in most organisations annual bonuses are paid within two and half months after end of year in the year they were earned.