Salary

Salary means:
the regular compensation received by an employee as a condition of employment. Compensation received by an employee for services performed. Salary and wages are reported annually by the employer to the U.S. Internal Revenue Service and the employee on Former Federal Tax Form (check here if the Form is current) W-2. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly. Salary is considered earned income and taxed as ordinary income.

See Tax Forms in the Encyclopedia.