Restricted Stock Unit RSU How It Works and Pros and Cons

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

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 …

Junior Accountant: Definition Role Requirements and Outlook

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

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 …

Employee Stock Options (ESOs) – A Complete Guide

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: Meaning and How it Works

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 …

Complete Guide to Small-Business Grants

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. …

Bonus Definition Different Types and Tax Treatment

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 …

Base Pay Definition and Comparison to Annual Pay

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 …