3.7 Chapter Summary and Additional Readings and Resources

3.7.1 Chapter Summary

A pay cycle refers to the frequency an employer pays its employees and can be daily, weekly, biweekly, semi-monthly, monthly, or any time interval a business chooses to settle its employee dues.

Regular earnings are payments made to an employee on a pay period basis for duties performed. On the other hand, non-regular payments are not made at each pay period and do not have an established frequency.

Gross earnings are the sum of regular gross earnings and non-regular gross earnings. Regular gross earnings include wages, salary, piecework, commissions, overtime pay, and holiday pay for statutory holidays. The most common non-regular gross earnings include bonuses and incentive payments, retroactive pay, and vacation pay without time taken.

Employment income includes earnings, taxable benefits, and taxable allowances. Non-taxable benefits, allowances, and expense reimbursements are not included in employment income.