The statement that best describes how salary employees are compensated C) A salary is a predetermined annual compensation amount divided by the number of pay periods within a year.
A salary can be described as a regular fixed payment that is paid to a person for the service he rendered during a specific period of time.
A salary is therefore a predetermined amount of money paid to a person on a regular basis, e.g. annually or monthly, in exchange for services rendered.
For example, for an employee that is paid an annual salary, the monthly salary will be calculated by dividing the annual salary by twelve which is the number of pay periods or months within a year.
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