Mastering Employee Compensation: A Comprehensive Guide
Learn how to effectively manage employee compensation, from understanding contractor vs. employee status to setting up payroll systems and designing motivating compensation plans. Avoid costly tax penalties and retain top talent.
Program Modules
Understanding Employee vs. Contractor
Distinguish between employees and independent contractors to ensure legal compliance.
Review IRS Guidelines
WeeklyStudy the IRS guidelines for classifying workers.
“A worker is an employee when the business has the right to direct and control the work performed by the worker.”
Setting Up Your Payroll System
Learn the steps to establish a compliant and efficient payroll system.
Obtain EIN
WeeklyAcquire a Federal Employer Identification Number from the IRS.
“You need to have a federal identification number also known as a EIN for your business.”
Explore Payroll Software Options
WeeklyResearch and compare full-service payroll providers.
“There are several full service payroll providers out there like ADP, Gusto, and QuickBooks full service payroll.”
Designing Motivating Compensation Plans
Craft compensation strategies that attract, motivate, and retain employees.
Evaluate Compensation Methods
WeeklyCompare hourly, salary, commission, and bonus structures.
“In order to do this correctly you need to determine the best methods to pay your employees whether that be with hourly pay or salary pay or with commissions bonuses or profit sharing.”
Determine Market Rate
WeeklyResearch industry standards for similar roles.
“The best thing you could do is to find out the market rate for the positions you're seeking to hire in your company.”
What You'll Accomplish
- Differentiate between employees and independent contractors.
- Establish a compliant payroll system.
- Design effective and motivating compensation plans.
- Understand the legal requirements for paying employees.
- Determine appropriate salary levels based on market research.
Full program access + updates