Salaried employees of the XYZ Corporation are permitted to choose how they will receive their annual compensation. They can be paid at the end of each week, at the end of every other week (bi-weekly), or at the end of each month. If the annual rate of pay is the same in each case, which compensation system should an employee choose?
A) Weekly payments
B) Bi-weekly payments
C) Monthly payments
D) It makes no difference because annual pay is the same in every case.

Question

Quizplus · Accepted Answer

Receiving payments weekly allows employees to access their money sooner, which can be beneficial for cash flow and potential interest earnings if deposited in an interest-bearing account.

Salaried Employees of the XYZ Corporation Are Permitted to Choose