1. Money

Understand Information About Employee Salary and Compensation

Curious about all of the terminology related to salary and compensation? You're not alone. Compensation and salary information is important for every employee to understand. Starting salary, salary range, pay grades, and more, all have different meanings. Understand employee compensation and salary information. Be informed about your salary and compensation information and terminology.

W-4 Form – Tax Withholding
Need to be able to fill out a W-4 Form for tax withholding? Here's what you need to know to fill out your form.

Base Salary
Base salary is a fixed amount of money paid to an employee by an employer in return for work performed. Base salary does not include benefits, bonuses or any other potential compensation from an employer. Base salary is paid, most frequently, in a bi-weekly paycheck to an exempt or professional employee. In most years, an employees base...

Cafeteria Plan Gives Employees Choices About Their Benefits
Looking for a way to customize your benefits plan to the needs of your individual employees? A cafeteria plan is an employee benefits plan that allows your employees to choose among a variety of options to create a benefits plan that best meets their needs and those of their family. In a cafeteria plan, an employee receives a certain number of...

Benefits
Benefits are a form of compensation paid by employers to employees over and above the amount of pay specified as a base salary or hourly rate of pay. Benefits are a portion of a total compensation package for employees. A comprehensive, common set of benefits includes the following components.

Compensation
What's the difference between salary and compensation? Compensation comprises much more than salary. Find out more.

Minimum Wage
What is a minimum wage and why does it exist? The Federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. Know yours to be in compliance and pay employees the appropriate amount.

Paycheck
An employee collects a paycheck in exchange for working for an employer. Find out more about paychecks.

Job Classification
Job classification is a system for objectively and accurately defining and evaluating the duties, responsibilities, tasks, and authority level of a job. The job classification, done correctly, determines the relative compensation for a job, so it is critically important to employees that job classification is fair and equitable. Find out more...

Profit Sharing
Profit sharing is an example of variable pay that is provided to employees when their company does well. Learn more about profit sharing.

Salary
Need to understand the role of salary when you discuss the employment relationship between employers and employees? What you need to know is here.

Signing Bonus
A signing bonus is a lump sum of money that an employer provides a prospective employee. The purpose of the signing bonus is to entice the applicant to sign-on with the employer’s organization. The signing bonus is most often used with executive level positions or to recruit employees with special, hard-to-find skills. The signing bonus is also...

Merit Pay Rewards Performance
Merit pay is an approach to compensation that rewards the higher performing employees. It has advantages and disadvantages for the employees and the employer. But, you need to consider merit pay.

Variable Pay
Variable pay is used generally to recognize and reward employee contribution toward company productivity, profitability, team work, safety, quality, or some other metric deemed important. Variable pay changes depending upon the circumstances. Learn more about variable pay.

Promotion Is Often a Reward to an Employee for Work Contributions
The advancement of an employee from one position to another position that has a higher salary range, a higher level job title, and more job responsibility is called a promotion. A promotion is viewed as a benefit. Find out more about what a promotion is and how to obtain a promotion.

Why Perform Job Evaluations?
Need to understand job evaluation? Find out how job evaluations can help you create an equitable compensation system when you classify jobs appropriately.

Garnishment
Garnishment is the process of taking money from an employee's compensation to pay off a debt that the employee owes. The garnishment is usually the result of a court order. The employer is required to cooperate with a wage garnishment order. Find out more about garnishment.

Promotion Is Often a Reward to an Employee for Work Contributions
The advancement of an employee from one position to another position that has a higher salary range, a higher level job title, and more job responsibility is called a promotion. A promotion is viewed as a benefit. Find out more about what a promotion is and how to obtain a promotion.

Payroll Taxes
Need information about payroll taxes, an overview about what they are? These are taxes the employer must withhold from an employee's paycheck to comply with government tax regulations. Find out more about payroll taxes.

Gross Pay
Gross pay is the total of all of the money that is due to an employee at the end of a pay period. Gross pay can include salary or hourly pay, overtime pay, and more. Find a definition for gross pay and the role gross pay plays in your compensation system.

Net Pay
Net pay is the amount of money that an employee takes home in his or her paycheck after voluntary and governmentally required deductions are made. Here's a simple definition for net pay and how it is computed.

Social Security Number
A social security number is required for you to obtain a job in the United States. Find out what they are and how to apply for a social security number.

Floating Holiday: Employer Considerations
Wonder what offering a floating holiday to employees entails on the employer's part? Here are the details that you need to offer a floating holiday as a part of your standard benefits package.

Payroll Deductions
What do you need to know about payroll deductions? They come in two flavors, voluntary and involuntary and some are required legally. Find out more about payroll deductions.

What Is Hourly to Salary?
Know what hourly to salary means in the employment world? If you're offered the opportunity, here's what it is and what you need to consider to make a good decision that is best for you.

How to Schedule and Pay Seasonal and Temporary Employees
Interested in how to schedule and pay seasonal or temporary employees? Rules are similar to those that govern pay and overtime for your regular employees. These are the rules about hours, overtime, and the effect of the Affordable Care Act for employers.

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