Salary and Wages

#2. Salary and Wages (Student Post)

Salary is usually for management positions that have employees under them that is you get paid the same amount every week but most places require you to work at least 45 hrs if you are salaried. Wage is what you earn by the hour if you work 40 hrs then you get paid for 40 hrs and nothing more if you work less than 40 hrs that you get paid for what you work. I was salaried at one time but went to hourly wage make more because anything over 40 at my company is time and a half and Sundays as well so I make out better on an hourly wage.

#3. Fringe Benefits ( Professor follow to a student response)

thank you for sharing your experience with fringe benefits! I loved your examples since they went a bit further than what we usually consider fringe benefits (health insurance or vacation). Some employees may receive some “luxury” benefits, i.e., a luxury company vehicle or tickets to an event. Moreover, because these benefits may be provided to senior employees or top executives, in some instances, these employees may also be shareholders of the company. How do you believe, from a tax perspective, this would affect the shareholder-employee, if any?