What is the difference between wages and benefits?

The difference between wages and benefits is an important one to understand when it comes to wage and hour law in New Mexico. Wages are the amount of money paid to an employee for the services they perform. This includes things such as their base salary, overtime pay, tips, commissions, and bonuses. Benefits are the other non-monetary rewards an employee receives from their job such as health insurance, vacation pay, and retirement plans. Wages are typically taxable and are mandated by both federal and state law. In New Mexico, the state’s minimum wage is currently $10.50 an hour for non-tipped employees and $2.13 an hour for tipped employees. In addition, the state requires employers to pay overtime wages to any employee that works more than 40 hours a week. Benefits, on the other hand, are not taxable, and employers are not required by law to provide them. However, employers commonly do provide them to attract and retain qualified employees. Common benefits that employers offer in New Mexico include paid time off, health insurance, life insurance, disability insurance, retirement plans, and educational assistance. In summary, the difference between wages and benefits is that wages are the money paid to an employee for their services and are typically taxable, while benefits are non-cash rewards given to employees such as healthcare insurance and vacation time and are not taxable. It is important to be aware of these differences when it comes to wage and hour law in New Mexico.

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What is the difference between wages and benefits?

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