DISCUSSION ACTIVITY In order to accurately calculate an employee's pay, it is important that payroll...

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DISCUSSION ACTIVITY

In order to accurately calculate an employee's pay, it is important that payroll clearly understands the different types of employee remuneration. In your own words, list and define the four categories of employment income, providing an example (other than regular pay) for each category.

Robert · Accepted Answer

Remuneration
Remuneration means employee pay.  There are a number of ways a company might pay remuneration 
to the employee.  
Broadly remuneration is classified as time rate and piece rate. 
Time rate: Here wages are paid for the time worked irrespective of production.  The example is where 
company pays fixed amount per month for a fixed number of hours to work.   
Piece rate:  Here wages are paid for the units produced by the employee or number of services rendered 
by the employee. 
Mixed rate: This combines both time rate and piece rate, which pays a fixed amount as time wages and 
incentives for more performance. 
Of the above three, mixed rate is considered the best as it gives both security to the employee and 
incentive for hard work. 
Time rate:   Hours worked x rate per hour 
Here if an employee works for 8 hours a day and his rate of pay is $100/- per hour then his weekly 
wages would be 
100x8x7 = 5600 dollars per week 
This pay is constant for short period and does not vary unless hours of work or rate per hour changes. 
Piece rate: Here remuneration is calculated as no of pieces produced x rate per piece 
Example:

DISCUSSION ACTIVITY In order to accurately calculate an employee's pay, it is important that payroll clearly understands the different types of employee remuneration. In your own words, list and...

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