Payment-in-kind Wages Law and Legal Definition
Payment-in-kind wages is compensation provided in the form of goods and services of value, rather than in cash format. Generally, this type of payment was practiced by the farmers to their employees in the form of farm commodities, such as livestock or food, instead of cash wages. The practice of offering payment-in-kind is primeval and it is practiced in a number of societies around the world. The payment-in-kind to the farm employees must be recorded and reported in the employees' W-2 forms.
Many companies adopted this as part of their benefits package. It may be in the form of bonds and other securities deposited into retirement accounts on behalf of employees. Sometimes, the companies offer their shares to employees as a form of compensation.
