Closely Held Employee vs. Salary & Wages Employee: What’s the Difference?

Closely Held Employee vs. Salary & Wages Employee: What’s the Difference?

Table of content

  1. What is a closely held employee?
  2. What is a salary and wages employee?
  3. Difference between closely held employee and salary & wages employee
  4. How to efficiently manage closely held employee and salary & wages employees with Workstem?

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.

How to efficiently manage closely held employee and salary & wages employees with Workstem?

Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.

Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and customised rule set.

Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!

相關文章

Preventing Negative Annual Leave Balance: Payroll Guide
Preventing Negative Annual Leave Balance: Payroll Guide
What is a negative leave balance? When an employee takes paid time off before they have acquired it, they are said to have a negative leave balanc...
Read More
2024 Minimum Wage Australia Guide
2024 Minimum Wage Australia Guide
What is the Minimum Wage in Australia? The minimum wage is the lowest legally mandated hourly wage that employers are required to pay their employ...
Read More
Unlocking Nurse Award Pay Point Progression
Unlocking Nurse Award Pay Point Progression
What is Nurse Award Pay Point Progression? Nurse Award Pay Point Progression is a system used to determine a nurse's salary based on their level o...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *