Glossary

bonus - compensation received by an employee for services performed. A bonus is given in addition to an employee's usual compensation.

commission - compensation received by an employee for services performed. Commissions are paid based on a percentage of sales made or a fixed amount per sale.

salary - compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.

tip income - money and goods received for services performed by food servers, baggage handlers, hairdressers, and others. Tips go beyond the stated amount of the bill and are given voluntarily.

wages - compensation received by employees for services performed. Usually, wages are computed by multiplying an hourly pay rate by the number of hours worked.