Individual wage determination

Lecture SME Management - Lesson 27: Recruitment, selection and training (Part 2). After studying this chapter you should be able to understand: selection and selection process: application blank, personal interview, checking references, employment tests; wage and salary administration,...

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“An employer must generally withhold federal income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer generally does not have to withhold or pay any taxes on payments to independent contractors. Common Law Rules To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined.

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Adverse Credit History. To be eligible for a Federal PLUS loan, the borrower may not have an adverse credit history, which is defined as having a bankruptcy, foreclosure, repossession, tax lien, wage garnishment or default determination in the last five years or a current delinquency of 90 or more days. Alternative Student Loan. See Private Student Loan. Asset.

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These differences are likely to stem from three important variations in user-side data on the use of financial services. First, the definition of an account varies across surveys and respondents are often prompted in different ways. The Global Findex survey defines an account as an individual or joint account at a formal financial institution (a bank, credit union, cooperative, post office, or microfi- nance institution) and notes in the question text that an account can be used to save money, to make or receive payments, or to receive wages and remittances.

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Clearly, a straightforward implication of wages being determined by sectoral conditions would be that industry-level contracts offer little scope for adjustments of individual wages to firm-specific demand shocks, even if the latter are of permanent nature. However, as demonstrated in Section 2.2, industry-level contracts do not necessarily provide an obstacle to the adjustment of wages to local conditions, as recent decentralisation tendencies in Germany have introduced the option of making such wage adjustments.

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