What are Wages?
Wages refer to the monetary compensation given to employees for working time. They are calculated based on an employee’s rate and the number of working hours, usually tracked through a timesheet or online time tracking system. To calculate an employee’s wage, multiply their rate by the total number of hours they worked. Employers also need to factor in any overtime hours, which are generally calculated at 1.5 times an employee’s hourly rate.
Wages can be paid at different frequencies, with bi-weekly being the most common. Bi-weekly wages are often paid in arrears. It’s important to note that there is a difference between wages and salary. Wage workers are paid by the hour, and their earnings are calculated based on the number of hours worked. On the other hand, salary workers receive a fixed amount of pay per pay period regardless of the number of hours worked.