The sum of all money paid to an employee that will be considered taxable wages is considered to be the employee's Gross Pay. Most employees in the United States are paid in one of two methods. Either as a rate multiplied by a unit. Typical units or measures for such a calculation include time (e.g. hours or days) and pieces (e.g. sold or assembled). Money Money is any marketable good or token used by a society as a store of value, a medium of exchange, or a unit of account. ... In payroll, the sum of all earnings for an employee that are eligible for a particular type of tax are considered Taxable Wages with respect to that tax. ... Employment is a contract between two parties, one being the employer and the other being the employee. ... In its simplest form, multiplication is a quick way of adding identical numbers. ...
An example Gross Pay might also include a bonus that an employee receives for good performance on his or her job, commission earnings that the employee might be awarded as part of a sales effort, or even the value of some benefit that has been already awarded to the employee but needs to be taxed as a part of payroll. Employment is a contract between two parties, one being the employer and the other being the employee. ... A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ... Payroll is one of a series of accounting transactions dealing with the process of paying employees for services rendered, after processing of the various requirements for withholding of money from the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions. ...
Example
In this example below, the employee in question is subject to all taxes for the earnings in question.
While there is no first pay stub documenting the first work-for-pay exchange, the first salaried work would have required a human society advanced enough to have a barter system to allow work to be exchanged for goods or other work.
More commonly, servitude either received no pay, as with slavery, serfdom, and indentured servitude, or received only fraction of what was produced, as with sharecropping.
Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes variable pay (such as bonuses, incentive pay, and commissions), benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.
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