The U.S. Small Business Administration issued an Interim Final Rule on August 25, 2020 (the “Rule”), addressing owner-employee compensation and related party nonpayroll costs. READ MORE
Amazon CEO Jeff Bezos Becomes the World’s First $200 Billion Man
Amazon CEO Jeff Bezos became the world’s first person ever to hit a net worth of $200 billion on Wednesday, as the tech giant’s stock continued a steady climb that kicked off in mid-March, as the coronavirus pandemic hit the U.S. READ MORE
The CEO who gave everyone a $70K minimum salary in 2015 has a message for the doubters
Five years ago, Dan Price upended the status quo of the corporate world—one in which executives reap many times what employees sow—by taking a radical stance on salaries at his credit card processing company, Gravity Payments. First, he cut his own salary from more than $1 million to $70,000. Then he created a minimum salary of $70,000 for every employee at his company. READ MORE
Salary increases set for workers in 2021 compensation plans
Maximizing Sales Performance is No Longer Just About Compensation
Sales organizations are being forced to change at an incredibly rapid pace. With buyers operating in new ways, and remote work becoming the norm, reps must adapt to a new selling paradigm — under heightened pressure to meet ambitious goals. READ MORE
New PPP forgiveness guidance addresses owner-employee compensation
The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule Monday addressing Paycheck Protection Program (PPP) forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs. READ MORE
CFOs must grapple with pandemic-related payroll tax nexus
Having employees work from home until COVID-19 subsides is a practical solution to the pandemic but it also creates potential state-level problems with nexus, business- and payroll taxes. READ MORE
Survey: Most employers planning raises, bonuses for 2021
This year, companies granted employees increases between 2.5% and 2.7%, below the 3% companies had budgeted before the pandemic hit, the survey report said. READ MORE
‘Not just a low-wage recession’: White-collar workers feel coronavirus squeeze
The coronavirus recession that began as a short-term shutdown devastating low-wage workers is now bearing down on white-collar America, where employers have been slower to rehire and job losses are more likely to be permanent. READ MORE
Terminating a CEO for Cause
The consequences of a “for cause” termination can be severe, with the former executive forfeiting equity awards, having to repay previously paid incentive compensation (the “claw-back”), losing severance benefits and having vested stock repurchased at a punitive price. READ MORE
PPP: Who is subject to Owner-Employee Compensation Forgiveness Limitations?
Self-employed Schedule C (and Schedule F) filers, general partners, and other PPP borrowers that utilized 2019 IRS Form 1040 Schedule C line 31 net profit amount in calculating the amount of their PPP loan are clearly subject to these limitations. However, the SBA guidance also indicates that owner-employees of C-Corporations, S-Corporations and LLCs are subject to the owner-employee compensation limits, and the SBA guidance is silent on limited partners. READ MORE
Subsidized — not minimum — wages should assist workers during the pandemic
The Democratic Party platform approved this week calls to more than double the federal minimum wage to $15 per hour. Democratic presidential nominee Joe Biden has declared that he’ll do just that if elected president, and the many supporters include his running mate, Sen. Kamala Harris (D-Calif.). But there is a more innovative way to help low-wage workers, and it’s hard to overstate how bad a minimum wage increase would be right now. READ MORE
AP FACT CHECK: Dems on minimum wage and poverty
Americans tuned into the Democratic National Convention were told Thursday that the higher minimum wage favored by presidential candidate Joe Biden would lift all full-time workers out of poverty. That's not what $15 an hour is likely to do. READ MORE
Why is Excessive Overtime Dangerous for Workers?
Overtime hours can be optional or mandatory, and the most obvious benefit for workers is that overtime leads to additional pay. This extra money can help pay off debt, allow families to take vacations, and be used for holidays and other expenses. Although companies may have the disadvantage of having to pay workers more, overtime can lead to increased levels of productivity. Having more services and products available to customers at a faster pace can help businesses earn more profits. READ MORE
Location-based salaries will kill your startup’s culture
This startup’s founder warns that reducing salaries to save a few bucks isn’t worth the damage you’ll do to team culture and morale. READ MORE
CEO Compensation is 320 Times Typical Worker
Average CEO compensation at the top 350 U.S. firms grew 14% to $21.3 million on average, according to an analysis from the Economic Policy Institute (EPI), a think tank based in Washington, D.C. READ MORE
How to Measure Key Metrics of Total Rewards
Total Rewards is an effective and competitive program that assists companies to attract, retain, and keep the best talents motivated. READ MORE
Restricted Stock Units: 10 Fast Facts
Restricted stock units (RSUs) continue to be a popular form of equity compensation. This article covers ten things every compensation professional should know about RSUs. READ MORE
A Key Reason Behind USPS’ Woes: Employee Compensation
So, what is going on here? Does UPS have fewer employees or does it pay less per employee than the Postal Service? The answer is both! The median postal employee is paid $96,105. The median UPS employee is paid $74,395. READ MORE
It’s time to rethink work for the COVID-19 era—performance management is the first step
I’m a huge fan of formal performance reviews. In my 10 years leading technology companies, I’ve come to see these exercises as invaluable. When done right, they can change careers, take working relationships to the next level, and increase employees’ happiness and sense of purpose. They can engender empathy between employer and employee. READ MORE