Kinds of Income Part II

There are business terms that one should be able to understand.

Wages

If you are working for someone else, you can earn some income for the services that you've rendered. There are actually different forms of wages that you can enjoy, and it depends on the policies of a company. For instance, you have the base-period wages and the benefit-year wages. The former refers to the wages during the employment period and is paid during the time of the base-period of the claimant. The benefit-year wages, on the other hand, refers to the wages that a claimant can earn during his/her benefit-year, including the partial benefits during unemployment.

Commission

This is a type of income that is being treated as a form of reward for salespeople for every product they have sold or services they have offered to their customers. These are normally calculated using a base percentage in relation to the goods sold or number of times the services have been provided.

A commission can either be the sole earning of an employee or can be treated as an addition to his basic or fixed salary. Regardless of the type, though, the main purpose of commission is to provide incentives to employees to encourage and motivate them to work harder.

Overtime

If there has been a designated time agreed by both parties (you and your client) in delivering the expected service, and you have been requested to go beyond the duration (or standard working hours), you can expect an overtime pay, which will then be added to your income. The number of working hours can be determined based on the tradition of the client or the company you're working for, the standard established by the industry, as designated by law, or as agreed between you and the client. So, for example, if you have standard working hours of eight, which could be from 8 to 5 (with 1 hour lunch break), you will be paid for overtime produced or services rendered beyond 5:00 p.m.

This will be in addition to your basic pay. Now, if you have been paid with a fixed salary or that you have decided to earn by the hour, you may want to be very careful about this one. You may meet several clients who would like their employees or staff or their virtual personal assistant to do more, and yet they don't pay you for the extra time. If this happens to you, you can run to the designated state or federal agency that protects the right of workers, or you can come up with your own time records. This way, all you need to do is present these documents to them whenever you're about to collect to your salary or income, or when you need some proof for your dispute.

Fringe Benefits

A fringe benefit is something that you get in relation to your performance of a particular service. It can be an addition to your fixed income.

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