My professor asked me why is that the salary is calculated monthly or annually.. :confused:
Please answer my question...

Can ans. Tomorrow by example.

OK, by examples:

We had three types of employees:

Hourly(2) - paid by the hour every other Friday
Eligible for overtime.

Salary(4) - worked a fixed number of hours
Not eligible for overtime, but eligible for comp time,if pre-approved. Paid the 15th and the last day of the month.

Professional. They were salaried, but were paid to do a job. Comp-time or overtime not in their contract.

The above is simplified with respect to actual paydays and holidays.

Your household bills might be:
Monthly: mortgage, car payment, electricity, car insurance(1)

Quarterly: Water bill, sewer bill, car insurance(1), income tax(3)

Yearly: House taxes, income tax (3)

Note 1: You might pay a primium for paying your car insurance on a monthly basis. You may have the ability to select your payment method.

Note 3: Income tax is really a quarterly payment taken out every paycheck. You ante up by April 15th of the following year.

Note(2): Hourly workers, say construction work, may only get paid when there is work.

Note 4: salaried employees could be paid monthly like social secuity recipients are. 3Some teachers which only work Sep thu Dec and Jan through May, can collect a salary for those months on none for the ones they don't work or they can opt for even monthly payments.

When you look at the varied ways one can get paid, you should be able to quickly see the answer you are seeking.

What do you think the answers are?

Under the US Fair Labor Standards Act or commonly known as FLSA there are exempt employees and non exempt employees.

Non exempt employees are paid for every hour they work and if they work over 40 hours in a week they must be paid overtime for those hours over 40. If they do not work they are not paid.

Exempt employees are exempt from the FLSA and they are paid to do a specific job. It does not matter if they work 20 hours or 60 hours they are paid the same salary for their work. If they work any part of a day they must be paid for the whole day. THey do not earn overtime and are paid the same salary each payday.

Either type of employee may be paid monthly, semi monthly or bi weekly however the company has their pay schedule set up.

Most generally a company will use the term wages for hourly non exempt employees and Salary for the exempt employees.

Shirley