Benefits

The second most expensive section of the Cost of Services Rendered is benefits. This includes health insurance provided by the company, retirement benefits, other forms of medical and life insurance. Sick leave to vacation time is included here too.

Payroll – Introduction to Basic Concepts

Payroll

Payroll is envisioned as the simple employer employee agreement related to compensation for services.  I often think of this as the simple handshake whereby the employer agrees to pay the employee a set rate per hour of work.  This was true a hundred or more years ago, but over time; history and governmental regulations complicated this simple relationship.

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Simple Retirement Plan – Section 408(p)

Simple Retirement Plan

There are several different retirement plans available to the small business owner.  But no plan offers so many advantages to small business as the Simple retirement plan.  The positive attributes include: 1) Easiest to understand, 2) Least amount of paperwork, 3) No compliance reporting and 4) Plenty of flexibility.  If you are in business and have less than 25 employees, this is your best option to include a great benefit for your employees. 

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Accrued Payroll – An Explanation

Accrued Payroll

Accrued payroll is a current liability comprised of four sections.  The first is the amount of payroll earned by staff and not yet processed or paid.  The second is the dollar value of personal time off accumulated for each employee aggregated into one number.  The third consists of payroll taxes owed to the respective governmental authorities and the final section comprises the accumulated benefits payable such as health insurance, retirement contributions, and amounts owed to third parties as deductions from the gross payroll.

An Introduction to the Employee Manual (Handbook)

Employee Manual

The employee manual is a guidebook and a tool to explain the policies and procedures for the small business operation.  It addresses the basic expectations for performance and conduct of the employee.  The manual is only a guide and the employee needs to understand its importance in the overall corporate policies and procedures hierarchy.

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The Different Forms of Compensation

The Different Forms of Compensation

There are two forms of compensation provided to employees; direct and indirect.  Direct forms of compensation have a multitude of types or methods, from salaries to bonuses.  Indirect compensation is primarily the various types of benefits and long term incentives.

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The True Cost of Labor

Cost of Labor

I laugh at the definition of labor costs because in my opinion the so called experts only have it half right.  Labor costs are more than just gross wages and benefits.  It should include the costs of insurance, employer taxation, human resources management and incentives.  All of the costs associated with delivering the human element of service should be included.  Let’s explore these costs from the most expensive to the least.

Introduction to Human Resources Management

Human Resources Management

Matching the right person to the right job is the primary objective of any human resource manager. If you had a company of highly trained, well informed, and happy staff, you would control the best place to work in the whole wide world. So to me, the best place to work is Santa’s Workshop.

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Service Equals Timeliness and Accuracy

Timeliness and Accuracy

In the world of accounting, we stand on two principles; timely and accurate information for the client.  Without either, the client can’t make good decisions.  As accountants our job is to record economic transactions and report this information in a financial format.  For the client it is imperative that the information is provided in a reasonable period of time after the activity.

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