Wages (Elementary)
Wages are the monetary compensation received by an employee for the services they provide to their employer. Wages are typically paid on an hourly, daily, weekly, bi-weekly, or monthly basis, and are calculated based on the number of hours worked, the type of work performed, and the employee’s experience and qualifications. Wages are typically subject to taxes and other deductions, such as Social Security and Medicare taxes, and may also be subject to overtime pay, bonuses, and other benefits.
History of Wages
The concept of wages has been around since ancient times, when workers were paid in goods or services. In the Middle Ages, wages were typically paid in coins or other forms of currency. By the 19th century, wages had become more standardized, with employers paying workers a set amount for a certain number of hours worked. Today, wages are typically paid in cash, although some employers may offer other forms of compensation, such as stock options or health insurance.
Comparison of Wages
| Type of Wage | Hourly | Daily | Weekly | Bi-Weekly | Monthly |
|---|---|---|---|---|---|
| Payment Frequency | Every Hour | Every Day | Every Week | Every Two Weeks | Every Month |
| Calculation | Hourly Rate x Hours Worked | Daily Rate x Days Worked | Weekly Rate x Weeks Worked | Bi-Weekly Rate x Weeks Worked | Monthly Rate x Months Worked |
Summary
Wages are the monetary compensation received by an employee for the services they provide to their employer. Wages are typically paid on an hourly, daily, weekly, bi-weekly, or monthly basis, and are calculated based on the number of hours worked, the type of work performed, and the employee’s experience and qualifications. For more information about wages, visit the websites of the U.S. Department of Labor, the Internal Revenue Service, and the Social Security Administration.
See Also
- Salary
- Minimum Wage
- Living Wage
- Overtime Pay
- Bonuses
- Taxes
- Social Security
- Medicare
- Employee Benefits
- Employment Law
