UKCustomPapers | Creating a compensation plan for a company

Creating a compensation plan for a company

Write about your company (Bright Apeal Limited) and address the following requirements.

Create a compensation program for the organization describing its components and allowances. Of the six most common types of allowances, explain why you selected the one(s) that you did.
Specifically address which of the three main compensation approaches the organization will use and why you chose that approach over the others.
Identify the mechanism(s) the organization will use to ensure the compensation structure remains current and competitive.
Identify any legal and taxation issues to consider.

Sample Answer

Compensation Program for Bright Apeal Limited

Bright Apeal Limited is a company that provides marketing and advertising services. The company’s compensation program is designed to attract and retain top talent, and to reward employees for their contributions to the company’s success.

The compensation program consists of the following components:

Base salary: Base salary is the foundation of the compensation program. It is the amount of money that employees receive on a regular basis, regardless of their performance.
Bonuses: Bonuses are payments that employees receive in addition to their base salary. They are typically awarded based on individual or team performance.
Benefits: Benefits are non-cash compensation that employees receive. They can include health insurance, retirement plans, and paid time off.
Allowances: Allowances are payments that employees receive to cover specific expenses. They can include housing allowances, transportation allowances, and education allowances.

Full Answer Section

The company offers a variety of allowances, including:

Housing allowance: The housing allowance is designed to help employees cover the cost of housing in the area where they work.
Transportation allowance: The transportation allowance is designed to help employees cover the cost of transportation to and from work.
Education allowance: The education allowance is designed to help employees pay for education expenses.

The company selected these allowances because they are the most common types of allowances offered by businesses. They are also the most likely to be of benefit to employees.

The company uses a merit-based compensation approach. This means that employees are paid based on their performance. The company believes that this approach is the fairest way to compensate employees, and it is also the most likely to motivate employees to perform at their best.

The company ensures that its compensation structure remains current and competitive by conducting regular market surveys. This allows the company to benchmark its salaries and benefits against those of other companies in the industry.

The company also considers legal and taxation issues when developing its compensation program. For example, the company must ensure that its salaries and benefits comply with all applicable laws. The company must also ensure that its employees are not taxed too heavily on their compensation.

Legal and Taxation Issues to Consider

There are a number of legal and taxation issues that companies need to consider when developing their compensation programs. These include:

Minimum wage laws: Companies must ensure that their salaries and wages comply with all applicable minimum wage laws.
Overtime laws: Companies must ensure that their employees are paid overtime wages for hours worked in excess of the standard workweek.
Tax laws: Companies must ensure that their employees are taxed correctly on their compensation. This includes withholding the appropriate amount of taxes from employees’ paychecks and filing the appropriate tax forms with the government.

Companies should consult with an attorney or tax advisor to ensure that their compensation programs comply with all applicable laws.

This question has been answered.

Get Answer

Our Free Services

Paper Formatting

No Lateness!

Our Guarantees

Creating a compensation plan for a company

This question has been answered.

Our Services

Daily Statistics

Why Choose Us