Assignment 2: Paid Wages, Questions And Answers

Step 1

What is the basic difference between salary and wages? Salary compensated employees are paid with a fix amount of money bi-weekly, semi-monthly or monthly for the work they have performed. It’s the same amount each paycheck and it doesn’t waver depending on the hours you work or do not work. It takes into consideration the vacation and sick time an employee takes off but still gives the same amount of compensation each pay period. Even though these employees work fixed hours, there are instances where they will have to devote their extra time without additional pay for time they may not have completed.

On the other hand, a wage compensated employee gets paid based on the hours spent working and are normally paid weekly or bi-weekly. Their wages will vary depending on their day to day functions at the end of each day. Meaning, if they take off during the week they must make the time up to receive full compensation or use

Medical Administrators earn up to an average of $64,821 per year so the employer would offer a specified annual amount for this position and not an hourly rate. Depending on the company or facility, Medical Billers, Coders, and LPN’s would fall into the wages category because these positions are production positions. Wage based positions are usually associated with support staff, which are non-management positions. These hourly rate positions are $14.00 (biller), $16.00 (coder) and $18 (LNP).

What are the most common benefits to salary vs. wages? If I’m understanding what this question is wanting, the most common benefits to salary vs. wages are mandated benefits which are unemployment insurance, social security, and workers compensation. Another benefit would be non-mandated benefits, which are private pension plans, paid time off and health insurance.

Step