What is a closely held employee?
A closely held employee refers to an individual who is an employee of a closely held company. Closely held companies are typically privately owned and have a limited number of shareholders, often including family members or a small group of investors. These employees are closely tied to the business and may have a significant stake in its success.
What is a salary and wages employee?
A salary and wages employee is someone who receives a fixed amount of money on a regular basis for their work, regardless of the number of hours worked. The salary is typically paid on a monthly or bi-weekly basis. A wage employee, on the other hand, is typically paid based on the number of hours worked and may receive overtime pay if they work more than a certain number of hours in a week. Both types of employees are entitled to certain benefits and protections under employment laws.
Difference between closely held employee and salary & wages employee
A closely held employee typically refers to someone who owns a significant portion of a business or is a key decision-maker within the company. These employees often have a significant stake in the success of the business and may have more influence over its operations.
On the other hand, a salary and wages employee is typically someone who is paid a fixed amount of money on a regular basis for their work. They may not have an ownership stake in the company or be involved in high-level decision-making processes.
In summary, the main difference between a closely held employee and a salary and wages employee is their level of ownership and influence within the company.
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