Tag: Types of Compensation
-
Team Based Pay in the Hair Salon Industry – A Critique
Team based pay in the hair salon industry is the newest solution for compensating employees and increasing the overall performance of a salon. IT WILL NOT WORK. This article is a critique of this program and provides several reasons why this management style is ineffective for a salon.
-
Fair Labor Standards Act – HR Compliance
The Fair Labor Standards Act of 1938 (FLSA) promulgates rules related to minimum wages, compensation related to overtime, and recordkeeping requirements. The Act also defines the terms ‘Exempt’ and ‘Non-Exempt’ employees related to overtime.
-
Direct Form of Compensation – Four Different Types
There are four different types of direct compensation for employees. These include: 1) Hourly Compensation, 2) Salaries, 3) Commissions and 4) Bonuses. There is some misinformation related to direct compensation as this subject relates to owners of a small business.
-
Payroll – Introduction to Basic Concepts
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…
-
Form W-4 – Employee’s Withholding Allowance Certificate
Form W-4 is a form filled out by an employee to certify to the employer the personal tax situation of the taxpayer. It is used by employers via the human resources department to fulfill three primary tasks. First, confirm the legal name and address of the employee.
-
Hair Stylist Compensation Model
One of the most fascinating business models is the hair salon industry. Many salons are poorly managed and rarely generate adequate profits. To make matters worse, the stylists are like professional sports players. One week they are playing for this team, and next week they are on a new team. In effect, they switch salons. It often happens…
-
Worker’s Compensation Insurance – A Basic Understanding
Worker’s Compensation Insurance a.k.a Workman’s Compensation Insurance provides for the medical cost of the sustained injury and for lost wages during recovery.
-
Exempt and Non-Exempt Employees
The Federal Labor Standards Act of 1938 sets the standards as it relates to Exempt and Non-Exempt employees and their associated compensation and work standards. The Labor Standards Act is located in Chapter 20 Section 201 of the Federal Code. This Act is applicable to those small business operations with more than $500,000 of annual revenues…
-
Accrued Payroll – An Explanation
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.
-
An Introduction to the Employee Manual (Handbook)
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.