Question

Monica is an agent focused on serving seniors eligible for Medicare. As she reviews her records, she is trying to determine which of the following items are considered compensation. What do you tell her?

1) Commissions
2) Bonuses
3) Mileage reimbursement
4) Awards

Answer 1

Commissions and bonuses are considered compensation, while mileage reimbursement and awards are not.

Step-by-step explanation:

Monica, as an agent focused on serving seniors eligible for Medicare, you want to determine which of the following items are considered compensation:

1. Commissions: Commissions are payments made to agents based on the sales they generate. They are a form of compensation.
2. Bonuses: Bonuses are additional payments made to agents as a reward for exceptional performance. They are also a form of compensation.
3. Mileage reimbursement: While mileage reimbursement is a payment for travel expenses, it is not considered direct compensation, as it is intended to cover actual expenses incurred and not as a direct payment for services rendered.
4. Awards: Awards typically do not involve direct financial compensation, but rather recognition for achievements or accomplishments.

So, in summary, commissions and bonuses are considered compensation, while mileage reimbursement and awards are not.