Various Employee Pay: Bonus

Bonus is generally given as an incentive in order to stimulate the employees to work more efficiently and effectively. 

Various Employee Pay: Commission

Commission definition:

This is usually the wage given to sales people based on the amount of sales he/she made. 

Normally, this amount is added to the basic pay or basic salary of an employee. Or, on a separate payment basis depending on the commission scheme of the company.

Sometimes sales people earns solely on a commission basis.  

Various Employee Pay: Wage

Wage definition:

It is a fixed amount of compensation for service rendered covering a fixed period of time, usually hours or a fixed amount of work.

This usually is the compensation given to skilled and unskilled laborer. 

Various Employee Pay: Salary

Salary definition:

It is a fixed amount of compensation for service rendered covering a fixed period of time, typically a month.

Usually, this refers to the pay of those in the managerial level and administrative employees.  These employees do not earn any overtime pay. 

Payroll Accounting: The Employee's Pay

Employee's pay depend on the employment contract whether the work to be rendered would be paid on a salary, wage, commission or bonus basis. 

Payroll Accounting

Payroll Accounting Definition:

It refers to the processes of determining who among the employees, workers and staff had rendered their services during the period.

Factors to be considered in payroll computation:
1.  how many days they rendered services
2.  how many hours in a day they rendered services
3.  items deductible from the gross pay to arrive at the net pay