BUSI 2312U Chapter Notes -Canada Pension Plan, Pension, Disability Insurance
Document Summary
To many people, compensation means pay and anything else provided is often considered so minor that it is called a fringe benefit . Pay a direct compensation because it is based on critical job factors on performance. Benefits and services indirect compensation because they are usually extended as a condition of employment and are not directly related to performance: ex. Benefits will not replace performance incentives as motivators, but especially for older generations health and pension benefits can make a great difference in corporate loyalty. They seek to satisfy several objectives: societal objectives. Through favourable tax treatment, employees can receive most benefits tax-free while employers can deduct the cost of benefits as a regular business expense. Benefits and services give many employees financial security against illness, disability, and retirement: organizational objectives. If a company did not offer retirement plans and paid vacations, recruits and present employees would work for competitors who did offer these fringes .
