Employee Benefits

One of the forms of indirect compensation, employee benefits include access to a retirement plans, forms of insurance (health, cancer, vision, dental, and life); vacation and personal time off. Some larger employers provide other forms of benefits especially for individuals involved in management. Most benefits are 100% covered by the employer or the employer agrees to subsidize the cost.  For a more in-depth understanding, read:  Employee Benefits.

Bookkeeping – Estimating Employee Benefits (Lesson 84)

Estimating Employee Benefits

Employee benefits consist of vacation, sick time, retirement benefits, healthcare and other de minimis benefits.  As a function of accrual accounting these benefits are estimated and posted as a deferred liability in the accrued payroll section of the current liabilities section of the balance sheet.  This lesson explains how to calculate the respective benefits and post this information to the books.

Retaining Stylists In The Salon Industry

Retaining Stylists in the Salon Industry

The constant movement of stylists from one salon to another is actually bad business. So how do you, as the owner, prevent or minimize this employee turnover? The answer lies in basic employee desires and needs in comparison to the salon’s needs and priorities.

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.

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.  This article describes this form of a retirement plan and Section 408 of the Internal Revenue Code, identifies the advantages, and concludes with a comprehensive example.  In addition, I explain how to fill out the proper document to begin the plan.

This is a plan within an allowed set of plans under Section 408 of the Internal Revenue Code.  All of us have heard of Section 401(k) plan.  The Internal Revenue Code dedicates Sections 401 through 408 to codifying retirement plans.  Within Section 408 are the easier to understand retirement plans.  They include Simplified Employee Plans (SEPs), Salary Reduction Simplified Employee Plans (SARSEPs) and the Savings Incentive Match Plan for Employees (SIMPLE).  Section 408(p) addresses the SIMPLE.

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