Compensation is payment made to employees for their services.
Compensation is usually either salary (paid by the month) or wages (paid by the hour). Salaried employees are exempt from overtime laws. Waged employees are not exempt from overtimes laws, and are sometimes referred to as non-exempts.
In these times many workers are self-employed contract workers. They are paid for their services as contractors, but are not considered employees. Hence, they are responsible for paying for their own benefits and Social Security payments. They pay self employment tax, and they are eligible to participate in retirement plans for the self-employed.
Related Fool Articles
- [link link title]
Related Fool Discussion Boards
Post your questions on Motley Fool's "Ask the Headhunter" board. []
Recent Mentions on Fool.com
- What the Chinese Stock Market Crash Can Teach You
- Facebook Isn?t as Cheap as You Might Think
- What's Nike Inc.'s Secret Sauce?
- CBOE Holdings, Inc. Revenue Tops Expectations Even as Trading Volume Remains Muted
- WisdomTree Sees Green With Record Sales, Earnings
- FireEye Earnings: Results Top Expectations, but Shares Fall as CFO Departs