Landslide Limusine Compensation Case Study
Compensation packages are determined by organizations of the type of business the business conducts. Compensation packages can consist of financial and non-financial systems like reward programs or some would call it perks and benefits. This study is for a limousine service as a driver in the field and the limousine service starts with an annual rate that has been estimated by surveys of the Bureau Labor of Statistics of a base start of $26,000 and with benefits of the employer that they choose to give. There could be areas of interested if the competitors are starting the base pay the plan for compensation would be to start a slight bit higher or even offer more of a benefit package with health care, retirement plan, and employee perks.
What …show more content…
Since Landslide Limousines is working at a net earning of (-) 50,000 dollars the first year, the total of the 25 employees he must plan for in company earnings is 650,000 dollars. Additionally, as incentive to attract employees, Mr. Stonefield will offer a full benefits package that includes only a 1 month waiting period for plan inclusion. Mr. Stonefield will offer 2 types of plan, An HMO or a PPO. The total cost of benefits for each will be deducted from the employee’s paycheck pre-tax. Of course, choosing the HMO will mean a higher premium per month but the PPO will off a higher deductable for plan inclusion. Vision and Dental will also be a pre-tax nominal fee for the employee. Additionally, the employees will be offered certain ‘a la carte’ benefits, they may purchase through Landslide Limousines insurance plan, they include: long term disability insurance, life insurance, catastrophic benefits insurance, direct deposit savings account and 401k benefits. In addition, the employees will be offered a 2 week vacation with 5 sick days with paid holidays for the 5 major holidays (New years day, Memorial day, 4th of July, Labor day and Christmas) with a time and a half benefit for employees working during those holidays. In addition, all employees will be able to declare their tips to keep adequate record for IRS
What …show more content…
Since Landslide Limousines is working at a net earning of (-) 50,000 dollars the first year, the total of the 25 employees he must plan for in company earnings is 650,000 dollars. Additionally, as incentive to attract employees, Mr. Stonefield will offer a full benefits package that includes only a 1 month waiting period for plan inclusion. Mr. Stonefield will offer 2 types of plan, An HMO or a PPO. The total cost of benefits for each will be deducted from the employee’s paycheck pre-tax. Of course, choosing the HMO will mean a higher premium per month but the PPO will off a higher deductable for plan inclusion. Vision and Dental will also be a pre-tax nominal fee for the employee. Additionally, the employees will be offered certain ‘a la carte’ benefits, they may purchase through Landslide Limousines insurance plan, they include: long term disability insurance, life insurance, catastrophic benefits insurance, direct deposit savings account and 401k benefits. In addition, the employees will be offered a 2 week vacation with 5 sick days with paid holidays for the 5 major holidays (New years day, Memorial day, 4th of July, Labor day and Christmas) with a time and a half benefit for employees working during those holidays. In addition, all employees will be able to declare their tips to keep adequate record for IRS