4. Anyone who buys shares (part ownership) in a company can earn a profit on these shares. The share of profits received is called a dividend. For example, Johnson & Johnson, the American healthcare company, paid out a dividend of $3.00 per share in 2015.
i
We will learn more about interest in chapter 7
GO
A dividend is a share of company profits that is paid to shareholders of a company.
5. Interest is the reward a person gets if they save money with a financial institution, such as a bank or credit union. The greater the savings, the greater the interest received. Interest rates are expressed as a percentage, such as 3%.
6. A tax refund is money that has been paid as tax and is then returned by the tax office. For example, if a person pays too much tax they will receive a tax refund.
Regular or irregular? A
Go to page 2 of your Activities and Accounts Book to identify sources of regular and irregular income.
BENEFIT-IN-KIND
The types of income we have looked at so far have all been in the form of money. Some employees also receive payment in the form of goods or services. This non-money income is called benefit-in-kind (BIK) or perks.
Examples of benefit-in-kind include: • A business paying health insurance for its employees. • An employee receiving a company car. • A waitress being provided with free or discounted lunches. • A fashion retail assistant being given free or discounted clothes to wear at work.
i Non-money income is called benefit-in-kind.
Many companies understand that their employees are their best asset. Benefits and perks keep employees happy, and happy employees generally work better.
