The three types of Compensation and Benefits - 1189 Words

The three types of Compensation and Benefits analyzed through this research are Shared Base Compensation dealing with stock option and restricted stock, Regular Base Compensation and Pension Plans. Laura Santos ACG4111/ Intermediate Accounting II February 2014 Compensation and Benefits comes in many different forms. The major goal for compensation and benefits is to reward employees for services provided by an individual for the benefit of the organization. It’s a set of programs, aiming to achieve and attract capable workers to a particular business. Compensation and benefits also helps motivate employees towards superior performance and retaining these services for a long period of time. There is†¦show more content†¦This type of compensation is designed to provide income during retirement. There are two different types of plans, defined benefit pension or defined contribution pension plans. Both plans have advantages, disadvantages, accounting policies and disclosures are applicable. It is a requirement of management to prepare pension statements according to the Statement of Recommended Practices (SORP). The accounting policies should be clearly explained in the notes for each material item and include accruals, expendi tures, investment income, benefits and payments. Consistency of accounting treatment between periods is a fundamental accounting concept and changes should not be made unless justifiable and disclosed with a reason. The notes disclosed should be in relation to the investment at market value to include profits, deposits and equities to name a few. The advantages and disadvantage can differ depending on which plan the employee choose. The defined benefit plan is simple; funds are calculated based on years of service, annual compensation and age. With this plan you don’t have to worry about investing money or market price fluctuations. The benefit plan gives a sense of ease that your benefit will remain unchanged because it is at set rate during retirement. Everything is based on calculations and the company is responsible for assuring that benefits are distributed to the retiree;Show MoreRelatedCompensation and Benefits1695 Words   |  7 Pages | |Compensation and Benefits | |Human Resource Management Coures | | Employee compensation and benefits are critical factors in the new hire acceptance process andRead MoreThree Forms of Compulsory Insurance1031 Words   |  4 PagesThere are three forms of compulsory insurance that are extremely beneficial to claimants in general. These compulsory insurance provide a foundation of financial reprieve to the employee of a company as a result of unemployment, accidents and injuries. 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In today’s highly competitive market, organisations are often faced with increased competitionRead MoreAnalysis Of The Hr Department With The Ideals And Goals Of The Organization1525 Words   |  7 Pagesare three levers of Human Resource Management, staffing, training, and compensation. Compensation is the most important of the three because it deals a lot with pay. Echo’s compensation is going to have a big effect on the employee’s attitudes and behaviors as well as impact the organization’s costs. Echo is going to want to attract and retain employees, align employee interests with the organization as well as investing the organization’s money in only the important and effective compensation methods