Common forms of salary payment include a periodic salary, such as an annual or monthly salary, an hourly rate of pay and a piece-meal rate that pays per task completed. Each form of payment has different rules that govern if and how the particular form can be paid.Continue Reading
Regular employees who are not eligible for overtime compensation are usually paid a period salary, such as an annual or monthly salary. A salary is a guaranteed payment, and an employee cannot have his salary reduced for partial-day absences except under special conditions.
Employees who are eligible for overtime compensation earn an hourly rate for each hour they work, and they must be paid one-and-a-half times that hourly rate for each hour worked over 40 in a week. Tipped employees can be paid a reduced hourly rate that varies by state. However, if the amount of a tipped employee's hourly rate plus tips doesn't equal the minimum wage on any given day, the employer must increase the hourly rate to pay minimum wage for the day.
Some employees are paid for each task they perform. This is called a piece-meal rate. Employers must convert the piece-meal rate to an hourly equivalent for the purpose of calculating overtime compensation.Learn more about Salaries