The Employer Identification Number (EIN) is a unique nine-digit identification issued by the Internal Revenue Service (IRS) to businesses and entities for tax-related purposes. It is also known as the Federal Tax Identification Number (FTIN). Companies obtain an EIN for tasks like opening a bank account, filing tax returns, and hiring employees. This identifier promotes efficient record-keeping, ensuring accurate and effective compliance with tax regulations.
Compensation and benefits refer to everything an organization is offering to an employee. This compensation and list of benefits could be in the form of financial aid, incentivized bonuses, vacation surplus, insurances, and more.
What is compensation and benefits in HRM?
In HR management, compensation and employee benefits are the renumeration that a business provides to the employee for the services they render to the org. It helps set incentives, and, in turn, helps the employees stay motivated to achieve more and achieve fast.
What are the four types of compensation?
Primarily, there are four types of compensation that can be offered to employees, and these are hourly, salary, commission, and bonuses.
What is the difference between compensation and benefits?
Compensation is the monetary provisions that are provided to the employees by the hiring organization. This financial aid is provided to the employee in terms of wages, salaries, tips, and more. While benefits can be monetary and non-monetary that are presented to the employees in the form of value, in exchange for their services.
What is the importance of compensation and benefits?
Compensations and benefits are an important aspect of human resource management as it helps the workforce keep going. These compensations keep the workforce motivated to achieve more. It helps the organization award its employees on the basis of their performance and helps them excel at every venture they undertake.
