Chapter 3 Vocab

A fixed rate of pay for work typically based on an annual contract

• salary

• commission

• overtime pay

• paid time off (PTO)

Incentive-based pay determined by performance, typically for jobs in sales

• salary

• commission

• overtime pay

• paid time off (PTO)

Additional hourly payment as either a percentage of the hourly rate or a fixed amount for working more than 40 hours per week

• salary

• commission

• overtime pay

• paid time off (PTO)

Employment benefit where employees can get paid for days they do not work.

• salary

• commission

• overtime pay

• paid time off (PTO)

Workers who are paid an hourly rate but have a written agreement or contract outlining specific terms of employment.

• contract hourly employees

• incentive-based pay

• profit-sharing plan

• bonus pay

Additional employee compensation for achieving specific goals.

• contract hourly employees

• incentive-based pay

• profit-sharing plan

• bonus pay

Employer-sponsored program where a share of the company's profits is provided to an employee or deposited into their retirement account.

• contract hourly employees

• incentive-based pay

• profit-sharing plan

• bonus pay

Financial award made for demonstrating certain behaviors or achieving certain work milestones.

• contract hourly employees

• incentive-based pay

• profit-sharing plan

• bonus pay

The amount of earned income before any deductions or taxes are taken out.

• gross pay

• net pay

• health savings account

• flexible spending account

The amount received by the employee after all deductions (involuntary and voluntary) have been subtracted from gross pay

• gross pay

• net pay

• health savings account

• flexible spending account