Fee

Reviewed by Anjaneyulu | Updated on Sep 28, 2020

Introduction

A fee is a price for rights or facilities that one charges as remuneration. Fees usually require overheads, salaries, expenses, and markups.

Traditionally, workers earn a fee compared to a contract, salary, or income, and sometimes use gold coins rather than money as account units. A contingent fee is an attorney's fee that is diminished or not at all paid if the defendant loses the court case.

Understanding

A service charge, usage charge, or surcharge is a fee that is charged to a customer's account. The purpose of a service charge also depends on the quality of the commodity and the service given accordingly. Sources of why this fee is paid include travel time costs, leasing fees for cars, liability, and insurance premiums for workers compensation and planning premiums.

Restaurants and banquet halls require paying service charges instead of tips as they ought to disperse them to their waiting staff. A fee may be fixed or variable, or it may be part of a tariff of two parts.

Types

For a wide range of purposes, individuals and companies incur the fees. A person may pay a fee to a financial planner to assist with choosing and handling investment, and a family may pay a property broker a fee when selling a house.

The company pays fees to various authorities to conduct business such as company incorporation fee, local authority registration fee, labour registration fee, land registration fee, and other statutory fees. A company can pay a fee to an accountant to help handle its accounts, and a security firm to ensure that the building is secured after working hours.

Governments can charge fees to provide a passport to an individual or licence to a business. Investment institutions may charge accounts with a quarterly maintenance fee, and banks can charge overdraft fees when cardholders overdraw their accounts.

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