Direct Form of Compensation – Four Different Types

There are four different types of direct compensation for employees.  These include: 1) Hourly Compensation, 2) Salaries, 3) Commissions and 4) Bonuses.  There is some misinformation related to direct compensation as this subject relates to owners of a small business.  Items such as distributions or dividends or some assigned values on the K-1 are generally…

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