What is a Golden Handshake? A golden handshake is a financial arrangement in which an employer offers a substantial sum of money or other benefits to an employee as an incentive for them to leave the company voluntarily or retire early. It is usually offered to senior executives or employees … …
Importance of Fringe Benefits in the Workplace 1. Employee Motivation: Fringe benefits serve as a powerful motivator for employees. When employees feel valued and appreciated through the provision of additional benefits, they are more likely to be motivated to perform at their best. This can lead to increased productivity and … …
What is Employment Insurance (EI)? Employment Insurance (EI) is a program run by the Government of Canada that provides temporary financial assistance to individuals who have lost their jobs or are unable to work due to various reasons. It is designed to help individuals meet their basic needs while they … …
What are 409A Plans? 409A plans are subject to specific rules and regulations outlined in Section 409A of the Internal Revenue Code. These rules are designed to ensure that deferred compensation is properly valued and taxed. Under a 409A plan, employees can defer a portion of their salary, bonuses, or … …
Defining the Glass Ceiling The glass ceiling refers to an invisible barrier that prevents women and other marginalized groups from advancing to higher positions in the workplace, particularly in leadership roles. It is a metaphorical concept that symbolizes the discriminatory practices and biases that limit the career growth and opportunities … …
Stock Compensation Definition Stock compensation refers to the practice of granting employees shares of company stock as part of their overall compensation package. This form of compensation is commonly used by companies to attract and retain talented employees, as well as to align the interests of employees with those of … …
What is Stipend? A stipend is a fixed sum of money that is paid regularly to an individual, typically for a specific purpose or as a form of financial support. It is often provided to cover living expenses, educational costs, or as compensation for work or services rendered. Definition and … …
What Is Severance Pay? Severance pay is a form of compensation that is provided to employees who are terminated from their jobs, typically due to reasons beyond their control, such as layoffs, restructuring, or company closures. It is a financial package that is given to employees as a way to … …
What is a Retention Bonus? A retention bonus is a financial incentive offered by a company to encourage employees to stay with the organization for a specific period of time. It is typically a one-time payment or a series of payments given to employees who meet certain criteria, such as … …
What are Restricted Stock Units (RSUs)? Restricted Stock Units (RSUs) are a form of compensation that companies use to reward their employees. RSUs are typically offered as part of an employee’s overall compensation package and are often used as an alternative to traditional stock options. Unlike stock options, which give … …
Leveraged Employee Stock Ownership Plan (LESOP) Overview A Leveraged Employee Stock Ownership Plan (LESOP) is a type of employee benefit plan that allows employees to become owners of the company they work for by purchasing company stock. This plan is designed to provide employees with a stake in the company’s … …
What is a Junior Accountant? A junior accountant is an entry-level position in the field of accounting. They work under the supervision of senior accountants or accounting managers and assist in the preparation and maintenance of financial records. Junior accountants play a crucial role in ensuring the accuracy and integrity … …
Honorarium Definition and Tax Treatment An honorarium is a payment made to an individual for services rendered, typically in a professional or academic setting. Unlike a salary or wage, which is paid to an employee on a regular basis, an honorarium is often a one-time payment for a specific task … …
What is an Employee Stock Purchase Plan (ESPP)? An Employee Stock Purchase Plan (ESPP) is a benefit program offered by some companies that allows employees to purchase company stock at a discounted price. It is a type of stock purchase plan that provides employees with an opportunity to become shareholders … …
What are Employee Stock Options? ESOs are typically granted to employees as part of their overall compensation package. They are often used as a way to incentivize and reward employees for their contributions to the company’s success. By offering employees the opportunity to purchase company stock at a discounted price, … …
Dependent Care Benefits Explained Dependent care benefits are an important aspect of employee compensation that can greatly assist working parents in managing the costs of childcare. These benefits are typically offered by employers as a way to support their employees in balancing work and family responsibilities. Dependent care benefits can … …
What are Small-Business Grants? Small-business grants are financial resources provided by various organizations, including government agencies, non-profit organizations, and corporations, to support and promote the growth of small businesses. These grants are typically awarded to entrepreneurs and small-business owners who meet specific criteria and demonstrate a need for financial assistance. … …
What is a Chief Technology Officer (CTO)? A Chief Technology Officer (CTO) is a senior executive responsible for overseeing the technological development and innovation within a company. They play a crucial role in shaping the company’s technology strategy and ensuring that it aligns with the overall business goals. In addition … …
Types of Bonuses There are several types of bonuses that employers may offer to their employees. These bonuses can vary in terms of eligibility, amount, and frequency. Here are some common types of bonuses: Signing Bonus: A signing bonus is a one-time payment offered to a new employee upon accepting … …
What is Base Pay? Base pay refers to the fixed amount of money that an employee receives for their work before any additional compensation or benefits are added. It is the foundation of an employee’s salary and does not include bonuses, commissions, or overtime pay. Base pay serves as a … …