How Wages Work (Part 1)
How Wages Work An exert from www.howstuffworks.com Very few of us work for free. But not everyone gets paid in the same way. You might be paid hourly, on a salary, by commission or work mostly for tips. Many different federal and state laws govern how much people can be paid and when. These laws also dictate how much we have to pay for taxes and whether certain jobs, like ones that require overtime or dangerous work, should pay more. In this article, we’ll explore all aspects of wages -- from the legal side, to the types of wages, to taxes, to how much money you’ll finally take home. Because there are so many different state laws concerning wages, we’ll focus mainly on federal law. It’s always a good idea to check with a labor lawyer or your state’s Department of Labor to learn more about laws that may apply to your state. The Fair Labor Standards Act (FLSA) is the most important law covering wages. Originally passed in 1938 but amended many times sin