Under EPF rules, both employee and employer contributions are payable. Employee contributions are deducted from the employee's salary and paid to KWSP together with the employer contributions. Although the contribution rates are usually featured as a percentage of the salary subject to EPF, the perce...
There are two main categories forbenefits: taxable and non-taxable. Although they are both benefits, they are not the same when it comes to payroll and income tax responsibilities. As a small business owner, it is important that you have an understanding of taxable benefits as they relate to...
Gross income includes all the income that constitutes earned income—namely, wages or salary, commissions, and bonuses, as well as business income net of expenses for those who are self-employed. It also includes income that doesn't come from employment. For instance, it includes income from i...
Details your contribution plan and all participants in it Keep records (e.g., amounts, participants, etc.) Benefits and disadvantages of profit sharing There are pros and cons to profit sharing. Before you start small business profit sharing, weigh the advantages and disadvantages. ...
Add the employee’s regular ($10 X 40) and overtime wages ($75) to get their total pay of $475. 3. Hours worked What is compensable time? Are you supposed to pay employees when they’re on breaks or on call? The Fair Labor Standards Act has the answers to these types of ...
When a business is a sole proprietorship, the employee-owner pays themselves wages and may also make a SEP contribution, which is limited to 25% of wages (or profits) minus the SEP contribution.7For a particular contribution rate (CR), the reduced rate is CR ÷ (1 + CR) for a 25% ...
A simple step is to invest in top talent. Be sure to pay fair and competitive wages to attract top talent, and even more importantly, keep that talent. Offer to pay for professional development courses, certificates, and even degrees. Set the example that employees are to be valued just li...
Savings contributionrefers to the monetary value added to the employee’s CTC example EPF,Gratuity Let’s see an example explaining the salary. An arbitrary salary breaks up is given below. Note: salary structure varies from one company to another ...
(TO INSURE PROMPTNESS), given to a waiter, taxi driver, or hairdresser. Gratuity will be mainly calculated on employee’s basic salary (last month salary). Gratuity is not calculated on any fixed rates, but by the formula, discussed below. There is no contribution from the employee.The ...
Additionally, tax deductibles can help individuals retain more of their hard-earnedincome. This also serves as the point of encouraging responsible financial planning. Individuals are incentivized via tax deductibles to continue earning wages and contributing a smaller amount of taxes that also contribute...