Multiple Choice
Which of the following are typically withheld from an employee's salary?
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9. Current Liabilities
Payroll and Payroll Taxes
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Which term best describes the payment made to an employee for the hours they have worked?
A
Bonus
B
Salary
C
Commission
D
Wages
Verified step by step guidance1
Understand the key terms: 'Bonus' refers to additional compensation given to employees, often as a reward for performance. 'Salary' is a fixed regular payment, typically paid monthly or biweekly, not dependent on hours worked. 'Commission' is a payment based on sales or performance metrics. 'Wages' are payments made to employees based on the hours they have worked.
Identify the context of the question: The payment described is specifically tied to the hours worked by the employee, which aligns with the definition of 'Wages'.
Eliminate incorrect options: 'Bonus' is not tied to hours worked, 'Salary' is fixed and not hourly, and 'Commission' is based on sales or performance rather than hours worked.
Confirm the correct term: 'Wages' is the term that best describes payment made to an employee for the hours they have worked.
Review the concept: Wages are typically calculated by multiplying the number of hours worked by the hourly rate agreed upon between the employer and employee.
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