Cash Wages

AAA

DEFINITION of 'Cash Wages'

Cash wages include any kind of compensation that comes in the form of spendable money. Cash wages can include actual cash currency, any kind of check and money orders. This type of compensation excludes stock and stock options, insurance and fringe benefits.

INVESTOPEDIA EXPLAINS 'Cash Wages'

Cash wages are always reported by the recipient as ordinary income. Wage earners must pay taxes out of these wages, regardless of how it is paid out. Employers must withhold payroll taxes and report employee wages. Some workers and employers pay cash wages 'under the table' to try to avoid the payroll taxes, but it is illegal to do so.

RELATED TERMS
  1. Wage Expense

    In financial accounting, wage expense represents payments made ...
  2. Cash

    Legal tender or coins that can be used in exchange goods, debt, ...
  3. Cash Awards

    An award given to an employee or contestant in the form of cash. ...
  4. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
  5. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  6. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
Related Articles
  1. Small Business Tax Obligations: Payroll ...
    Taxes

    Small Business Tax Obligations: Payroll ...

  2. The Minimum Wage: Does It Matter?
    Insurance

    The Minimum Wage: Does It Matter?

  3. How do I file taxes for income from ...
    Retirement

    How do I file taxes for income from ...

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center