Which of the following statements regarding compensation is false?
A) Bonuses are a form of compensation obtained if certain criteria are met.
B) Bonuses paid within 2½ months of year-end are included in employee's compensation in the year they were earned.
C) Wages are usually paid by the hour.
D) Salary is usually a form of fixed compensation.

Question

Quizplus · Accepted Answer

Bonuses paid within 2½ months of year-end are actually considered part of the following year's compensation, not the year they were earned. This is known as the "2½ month rule" for deferred compensation.

Which of the Following Statements Regarding Compensation Is False