A person whose pay is based on an annual amount (instead of being based on an hourly rate of
pay multiplied by actual hours worked). For example, the officers of a corporation and the heads
of departments within a company will likely be salaried employees. (On the other hand,
production workers are likely to be paid an hourly wage rate for the hours worked.)
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.