Howe 2 Ski Case Study

Howe 2 Ski Case Study
Howe 2 Ski Case Study
1. Given the background information about Howe 2 Ski Stores, discuss the feasibility of
implementing lump sum bonus, pay for knowledge, profit sharing, and gainsharing plans. What plan
or plans would you recommend that Howe look at most closely and why?
Lump sum bonuses are a form of performance pay bonus. Defined as "bonuses ... earned at the end
of a specified time period, such as monthly, quarterly, or annually, when a salesperson achieves a
specific level of sales or sales quota" (Quast), they are utilized frequently in the sales industry. The
dilemma, in this case, is that quality and productivity is not based only on sales. The molders are
contributing to the issues that impact How 2 Ski. The lump sum bonuses ... Show more content on
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The Scanlon, Rucker and Improshare gain sharing plans are those most often utilized in
organizations.
In order to appropriately recommend an incentive plan, one must first identify the main issues with
operation at Howe 2 ski. Howe 2 Ski has experience increased competition resulting in a decreased
market share. Smaller market share increases the negative impact a lack of productivity and
customer dissatisfaction has on Howe 2 Ski's profits. The decreased production of both the molders
and Sales–Persons result in increased inventory and higher cost of production. Furthermore, Howe
has attempted to establish an incentive pay program that has served to be ineffective and has
fostered low morale within the organization.
Given these factors, gainsharing would be the most beneficial for How 2 Ski.
2. Assuming that Howe decides that a gainsharing plan is feasible, what could be done to increase
the likelihood of success?
Timothy L Ross, Ph.D. offers comprehensive research providing an astute account of the effective
implementation of gainsharing plans.
A well–planned gainsharing plan is essential when implementing the bonus program. First, a plan
should include elements of employee involvement. It is important that management gain employee
... Get more on HelpWriting.net ...

Military Retirement Benefits For The Current Retirement...
POSITION PAPER
ON
MILITARY RETIREMENT BENEFITS
1. The following position paper will cover the future of military retirement benefits in the current
fiscally–constrained environment. Specifically, the problem with the current fiscally–unsustainable
retirement program and possible solutions to the aforementioned problem. This paper advocates
solutions including discussion on the current program, the newly implemented program, and
variations of those programs.
2. The current military retirement program draws a great deal of attention due mainly to its cost.
However, there are many factors that contribute to the overall disdain with the current retirement
program. Some of those factors being cost, equality, civilian comparability. In ... Show more content
on Helpwriting.net ...
For example, "...other public and private sector retirement plans typically do not begin providing an
annuity until age 55, 60, or 65..." The next problem with the current retirement plan is that it is an
'all or nothing' system. Either a military member serves 20 years and qualifies for benefits or they do
not. This is vastly different from many civilian programs currently offered and something that the
Department of Defense (DOD) has attempted to remedy with the newly implemented program.
Many civilian–based retirement programs offer vesting programs that enable employees to secure
retirement benefits after a certain number of years, usually anywhere from five to 15 years. Another
issue with the current military retirement plan is its comparability to the private–sector. As stated by
FAS, "...private–sector employers who have reduced or eliminated their reliance on defined benefit
programs and have focused almost exclusively on 401(K)–type programs..." Additionally, many
private–sector companies offer contribution matching up to a certain percentage, assisting
employees in saving for retirement. This is not offered in the current military retirement plan.
Having discussed the current retirement program the next topic will be the newly implemented
retirement program.
3. A possible solution to the current retirement program is a recently authorized plan. In fiscal year
(FY) 2016 a new military retirement plan was introduced

Uncle Jack's Retirement Plans
Both Jennie's and her Uncle Jack's retirement plans include health insurance coverage until age 65
and after that, Medicare supplement insurance. Of the ways mentioned in the text to reduce
employer health care costs, which are you familiar with? Which might be a good fit for Jennie
and/or Uncle Jack? Jennie's Uncle Jack has what they call a defined benefit pension plan which is a
retirement program promised a pension based on age and years of service (Mathis, Jackson,
Valentine, & Meglich, 2017, p. 502). Defined benefit pension plan advantage is that Uncle Jack
didn't have to contribute anything just show up for work. Also, the plan allows for the spouse to be a
beneficiary of the funds should the employee take a payment that is less. Therefore,

Test Paper
Human Resource Management Report on Evaluating Non–traditional Incentive System Case study
of Howe 2 Ski Sores Submitted By Mr. Sardar Ali MBA Section–D Submitted to Lecturer: Mr.
Baber Jamil Institute of Management Sciences Phase 7 Hayatabad Pehsawar, Pakistan Evaluating
Non–Traditional Incentive Systems Case Study: Howe 2 Ski Stores Introduction: In this case study,
the main focus of our interest is to evaluate the non traditional incentive system. But before going
into the detail of Non–traditional incentive system, let us summarize the case study first. Case
Study: Maria Howe, a ski enthusiast and business school major, opened a store 10 years ago after
her graduation with financial backing from her family and ... Show more content on Helpwriting.net
...
Furthermore, at least 15 percent of all ski orders were more than two days late, even though
customers did not miss a trip or vacation as a result. In these situations, an attempt to respond to
these difficulties, Howe instituted a merit performance system for the molders only. Although
productivity seemed to increase for a while, but this was not the permanent solution. Furthermore
the molders felt that their merit ratings were inaccurate, because the store managers could not
observe them much of the time. Further, they argued that their performance would have been much
higher if other employees had not interrupted them with questions about appropriate bindings or
failed to clearly identify the appropriate equipment on the sales tickets. Other employees also
complained because they were not given the opportunity of merit base pay. Sales representative
argued that their work was essential for high sales figures and high quality equipments. Similarly all
others employees started complaints. Howe had to conclude that the employees were correct on
many of these points, so she suspended the merit plan at the end of the ski season and promised to
re–evaluate its fairness. Even more convincing were several indications that productivity problems
were not limited to molder employees. Complaint about customer service increased 20 percent
during the year. Although Howe mentioned this to employee in the stores when she visited and
asked the store managers

Fiduciary Relationship Essay
I. Question 1
Courts have identified two categories of fiduciary relationships: The first is "inherently fiduciary"
and the second is "fact–based". The circumstances in which a fiduciary relationship would arise
include:
A. Undertaking of trust and confidence
Mostly, fiduciary relationships involve an agreement where one party accepts from another on trust,
the exercise of a power or discretion over his or her interests. The agreement does not need to be
contractual. The key criterion is whether 'one party is reasonably entitled to repose and does repose
trust and confidence in another'. That is when any particular aspect of the agreement gives rise to an
obligation of loyalty, beyond the contractual terms.
B. Vulnerability
Often a ... Show more content on Helpwriting.net ...
Moreover, a fiduciary relationship does not arise where one of the parties has failed to protect
himself adequately. However, Mason J (dissent) found there was a limited fiduciary relationship.
Although HPI was entitled to act in its own interests, it is not inconsistent with a fiduciary
relationship if there is also an obligation to act in another's interests.
In contrast, the NZSC in Chrinside v Fay [2006] unanimously held the parties in a joint venture
owed each other fiduciary duties. A joint venture with a view of sharing the profit is inherently
fiduciary per Elias CJ. Further, when a joint venture had sufficiently advanced beyond mere
discussion of possibilities to making plan, costing and implementing, it does amount to a
relationship of fiduciary per Gault J. Moreover, most joint venture relationships can properly be
regarded as being inherently fiduciary because of the analogy with partnerships per Tipping and
Blanchard JJ. The key point is whether the relationship entitled one party to repose trust and
confidence in the other party.
In my view the New Zealand Supreme Court's approach is more convincing.
III. Question 3
There is a presumptive requirement that once a breach of fiduciary duty has been established the
errant fiduciary must disgorge all profits made by dint of the breach. There are two main exceptions
to that rule. First is where there has been some antecedent agreement for profit

University Health Systems Is The Leading Trauma Center For...
The organization that I have chosen is University Health Systems also known as Bexar County
Hospital. University Health Systems is the leading trauma center for South Texas.. The medical
benefits that are offered can only be used within the organization and the family medical offices.
The University Health Systems is a large organization that is part of the medical school; as well it is
the County Hospital where all the inmates go for treatment. They are expecting every employee to
use or go though the county clinics to seek treatment, which is a challenge in itself as the clinics, are
so busy on any given day or night. There are many reasons to rethink the compensation and benefits
that this organization offers employees. They do offer a large PTO amount each payday; however
that is used for everything such as, sick leave, holiday pay, and vacations. If one of the departments
is closed for the holiday then you are forced to take PTO even if you do not want to. During the first
year of employment, full–time staff accrues 28 days at the rate of 8.62 hours every two weeks. The
accrual rate increases with each year of full–time service, up to a rate of 38 days per year
(University Health Systems, 2015). Another benefit that is offered is a 457 account in which the
company will match 25 cents on the dollar. That is not a very good retirement plan. When looking at
the organization as a whole, there must be some way that the compensation & benefits can be re–
evaluated and

Essay What You Should Know About 401k Plans
Bits of What You Probably Should Know of 401 (k) Plans
––– The term 401 (k) is one that is heard quite often in today's. Most people know that it has
something to do with retirement, but few young people know exactly how 401 (k) plans work or
why they are becoming more and more popular. Additionally, many people who have 401 (k) plans
may not know all the details of how they work, how to get the most out of their plan, and how to
keep their money safe. In reality, everyone in the business world should be aware of the details and
advantages of having and managing a 401 (k) type savings plan, as it is becoming one of the most
popular ways to save for retirement in the United States and many other countries. First, it is
imperative to ... Show more content on Helpwriting.net ...
There are some cases, however, where there are exceptions . Some exceptions may include leaving
your employer at age fifty–five or older, purchase of a primary residence, to avoid foreclosure of or
eviction from a primary residence, and medical expenses not covered by insurance (The basics of a
401(k) plan). If a person chooses to wait to begin taking money from their account, they must begin
making required minimum distributions by the year after they turn seventy and one half. The
notable exception is for those still working at this age (401 (k) – Wikipedia). There are many
advantages of 401 (k) plans, both for employees and their employers. One major important benefit
is that the employee has control over how much money they contribute to their account. In addition
all employer contributions and any growth in the capital grow tax–free until withdrawal. If the
company matches contributions, it's like getting extra money on top of your salary. Also, unlike a
pension, all the savings can be moved from one company's plan to the next (or to an individual
retirement account) if a participant changes jobs (Neiters). Another benefit can be that employees
can reduce their taxes because they are reducing their taxable income while they are working and
because they will be in a lower tax bracket when they begin making distributions. "The major cause
for the huge popularity of

Possible Retirement Plans
In this report I will be giving you a brief description of three possible retirement plans; and to
compare and contrast each similarity and difference.
A retirement plan is a defined type of pension plan in which an employer/sponsor promises a
specified monthly benefit on retirement that is predetermined by a formula based on the employee's
earnings history, tenure of service and age, rather than depending directly on individual investment
returns. I've chosen to discuss the 401(k), 403(b), and the SEP (Simplified Employee Pension Plan).
A 401(k) is a feature of a qualified profit sharing plan that allows employees to contribute a portion
of their wages to an individual account. To start a 401(k) you are required by your employer to pass
a ... Show more content on Helpwriting.net ...
It's very similar to a 401(k) plan. Just as with a 401(k) plan, a 403(b) plan lets employees defer some
of their salary into an individual accounts. For example, the 403(b) is used primarily by the self–
employed or small business owners. As the employer, you can contribute up to 25 percent of your
income or $53,000, whichever is less, in 2015. These accounts are easier to set up than a solo
401(k).Lastly, a SEP or a Simplified Employee Pension plan can provide an important source of
income at retirement by letting employers set aside money in retirement account for themselves and
their employees. It's a flexible plan if cash flow is an issue. The plan I think would be more
beneficial long–term would be a 401k match which is the best plan and the current plan I have being
a CNA at a nursing facility. When I worked as a cook on Ft. Sam Houston AFB I had a great 401k
plan that when I left that job after 2 and a half years I was granted my pension I so deserved and
helped me thru hard times. To withdraw a pension you have to be willing to give up 20% of your
earning which is roughly $400 or roll it into another 401(k) account with a new employer. A short
term retirement plan I did not list but I would say is a simple IRA account. It has a low contribution
each year, easy to set up and inexpensive. The plan that is best for where I am in life as of today is
the 401k plan. I have it and I've never had any issues with it. I ended up saving more money than I
thought and I am very excited for my upcoming

Research Paper On 401 (K)
The 401(k) plan is something that every single employee and future employee must have. Where did
our 401(k)'s come from, what is a 401(k), how do you use a 401(k); these questions are just some of
the few that have arisen from starting a 401(k). On average, more than 75 percent of the
employment opportunities here in the United States of America, indeed have a predefined 401(k), or
employment savings plan in the works. This only means that our retirement is well off to a great
start.
In the United States, a 401(k) plan is the tax–qualified, defined contribution pension account defined
in subsection 401(k) of the Internal Revenue Code. Under this plan, retirement savings contributions
are provided and sometimes proportionately matched by an employer. However, in 1980 a benefits
consultant named Ted Benna took note of the previously obscure provision. Mr. Benna figured out
that it could be used to create a simple tax–advantaged way to save for retirement. At this ... Show
more content on Helpwriting.net ...
But keep in mind that the purpose of a 401(k) is to save for retirement. Take money out of it now,
and you'll risk running out of money during retirement." (WS2) Now, just because the 401(k) plan is
meant for after retirement, this does not mean that you cannot withdraw your savings early. If you
decide to stay with a company until you retire, when you pull your 401(k) or saving plan, the only
fees you will receive are the taxes owed to the government for holding that money and not including
it in your annual income tax statement. If you decide to withdraw a portion of your 401(k), you may
face stiff tax consequences and penalties for withdrawing money before age 60. Still, if you're
facing a financial emergency – for instance, your child's college tuition is almost due and your
401(k) is your only source of available funds – borrowing or withdrawing money from your 401(k)
may be your only

Implementing A Traditional 401 ( K ) Plan
Recommended Plan
We recommend that SmartKidz initiate a traditional 401(k) plan. A traditional 401(k) plan is a
defined–contribution plan for for–profit organizations. In this plan, employees are allowed to
contribute a percentage of their salary before taxes up to a maximum contribution, which is $18,000
as of 2015 (IRS). In addition, employers may choose to add to each employee's 401(k) plan through
matching each individual contribution or providing a one–time lump sum. Each employee has a tax–
deferred account where he or she is able to choose where to allocate his or her contributions. For
example, mutual funds and target funds are common investment options.
Overall, a retirement plan, such as a traditional 401(k), is the key to a ... Show more content on
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In addition, there is more portability for retirement savings; 401(k)s can be rolled over into IRAs if
employees change companies. This is a significant benefit for millennials who are expected to
remain with companies for 3–5 years before switching. Further, as for retirement plans similar to a
Roth or Safe Harbor, a traditional 401(k) is less expensive and easier to manage. However, these
types of plans can be added on later, if SmartKidz would desire.
Suggested Provisions
In a preliminary outline of the plan, we have several key suggestions. First, SmartKidz should allow
both full–time and part–time employees to contribute to a 401(k) plan. Although part–time
employees may result in higher administrative costs as a result of the high turnover associated with
this category of workers, it is very important for these employees to be able to contribute to
retirement plans. All of SmartKidz' part–time employees are between the ages of 25 and 65; they are
not high school students trying to earn a paycheck. Your part–time employees are part–time for a
reason–pregnancy, disability, and other household duties–so to accomplish your goal of showing
respect and dignity, you should allow them to put money towards their future. In addition, allowing
every employee to contribute would reduce the possible tension between full–time and part–time
employees and increase the overall morale. Additionally, it could even reduce the turnover in part–
time

The Retirement Plan For Retirement Plans
IV. DISCUSSION AND ANALYSIS
a. Retirements Benefits
Another of the concerns that Louis, Joyce, and Bryan have is they would like a retirement program
that will shelter a substantial portion of their income from taxes. Of the myriad of choices, a
company has for retirement plans, the best tax shelter for the owners is the qualified retirement plan.
With the qualified retirement plan Louis, Joyce, and Bryan would be able to eliminate any current
tax hit on a substantial portion of their income and be able to grow tax–free in a trust that they
manage.
Through this plan the owners would be able to make tax–deductible contributions that would be
based on actuarial calculations that will fund up to 100 percent of his or her highest three years of
compensation or $205,000, whichever is lower. I.R.C. §415(b)(1). The contributions that will be
made into the fund will depend on the age of the owner, which in the case of Louis, Joyce, and
Bryan would be extremely beneficial since they are getting older and hope to retire soon.
The downside to this plan is that it will only work if everyone participates in it. Meaning that all of
the employees have to participate, which can sometimes feel like a burden on the owners. A lot of
times when companies have a lot of non–owner employees, the cost of funding the plans can be
prohibitive and often times make it harder on the owners to actually have the tax shelters that they
are looking for. Because Web–Master Inc., has 10 other employees

Retirement Pension Plans
A) Based on FASB.org, there are two types of retirement pension plans that are employer–
sponsored: defined–contribution plan and defined–benefit plan. The different benefits of these plans
show if an employee or an employer has risks in reference with the investment of funds. They also
change the costs for each plan. –Defined–contribution plan accepts contributions to it and allows the
investment of funds saved over time. The contributions are mainly made by the employee, with
some matched by the employer. The most common example is 401K Plan. The employee decides on
the portfolio and investment tactics in order to increase the plan assets. This plan is a low risk and a
low cost to the employer. –Defined–benefit plan promises the amount of ... Show more content on
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FASB created Statement 158 that amended statements 87 and 132 and required different recognition
of gains and losses for underfunded and overfunded pension plans. Large companies faced shortfalls
because they severally underfunded their pension plans and did not recognize it properly. Per
FASB.org, prior accounting standards let the companies recognize an asset or liability "from a
defined benefit postretirement plan, which almost always differed from the plan's overfunded or
underfunded status". A company could delay recognition of certain economic events. The delay was
affecting the changes in plan assets and liabilities; often liabilities were recognized at significantly
less amounts than the underfunded plan showed. A company also could recognize an asset on its
Balance Sheet for the underfunded plan. All information about overfunded and underfunded plans
was taken to the footnotes in the form of reconciliation. This created informational asymmetry and
did not provide full representation of a company's financial situation. FASB Statement 158 required
every company to recognize economic events in the year that they occur, as well as reporting current
funded status as assets and liabilities for the defined–benefit pension plans on company's financial
statements and not in the notes. This Statement is in effect since December

Total Compensation Is The Package Of Quantifiable Rewards
Section A: Question # 2: Total Compensation is the package of quantifiable rewards an employee
receives for his or her labors. It includes three components: base compensation, pay incentives, and
indirect compensation/benefits (Gomez–Mejia, Balkin, & Cardy, 2016, p. 317). Although
government pay has grade level (e.g. Grade 1 – 15) and you might tend to know a GS 1 salary from
a GS 14 salary; however, it's still a secret because there are steps 1 through 10 per grade levels.
There are really no secrets when it comes to salary because people talk. I believe on a fundamental
level that the openness is better that secrecy in all we do including salary due to the fact that this
will help organizations to retain the best employees because they are more likely to feel they are
getting a fair salary. I also believe that openness will perpetuate unfair salaries which are bad for
people and for the organization. I am of the conviction that one of the main reasons for salary
secrecy may surely be that they are not currently fair and therefore making salaries open seems
dangerous to many workplaces. Maybe Mr. John Doe is making more than me, not because he does
a better job, but because he drives a harder bargain when it comes time to negotiate salaries or is a
close associate of the boss. In the salaried ranks of the working world, not everyone get the same
salary of raise if they are paid according to contributions, therefore, salary openness would do the
organization a lot of good

Employee Benefits
Employee Benefits – Health Care Compliance Risks At the end of 2014, PYB has 87 full–time and
28 part–time workers. With recent company success, PYB will continue to hire new employees to
accommodate for higher production. However, with the passing of the Affordable Care Act in 2010,
PYB is currently not in health care compliance by not providing "adequate health care coverage to
their employees. " Since PYB has 50 or more full time employees, they are required to provide
minimal coverage or pay the "sledgehammer tax" of $2,084 per full–time employee that is eligible
for coverage. There also needs to be a determination of analyzing the health of current employees.
This can be determined if PYB wants to implement a fully insured, self–funded or hybrid self–
funded health plan for their employees. Solution: With the implementation of the Affordable Care
Act, companies have been pressed to make a calculated move. With our consultative services and an
established HR solution team, we will do a thorough cost benefit analysis to determine whether
should provide an employee benefit plan or pay the tax. However, we strongly recommend that
companies do offer some sort of comprehensive benefit plan to their employees because it improves
employee health, wellness, recruiting and productivity. With that being said, providing a health care
plan to employees can be extremely expensive. Recent mergers between health care providers
Anthem & Cigna and Aetna & Humana will change the

Strategic Plan Part 1: Conceptualizing a Business
1
Strategic Plan Part 1: Conceptualizing a Business BUS/475 – Integrated Business Topics Michael
Portillo
August 29, 2011
2
GPS Marketing is a marketing company that specializes in getting qualified guaranteed prospects to
see in front of independent insurance agents. GPS actually stands for "Guaranteed Prospects to See".
GPS Marketing guarantees every agent that comes aboard with our company that we will put them
in front of at least 15 qualified prospects. GPS Marketing's mission statement is " Our goal is to get
independent insurance agents in front of qualified annuity prospects on a favorable basis which in
return ... Show more content on Helpwriting.net ...
As mentioned in the first paragraph, GPS Marketing guarantees at least 15 of these forms to the
agent. The agent then has all of this information about the consumer to call them up and make an
appointment to not only drop off this free "Guide to Social Security" booklet but to also talk with
them about the information that they put on the form that they sent in. This will be a
3
great selling tool for the agent because they will be able to try and find ways to solve or help
eliminate those consumers concerns with retirement saving plans. GPS will also give the agent the
entire mailing list that they sent the mailer to so that the agent can continue to send other mailers or
newsletters to those individuals. Secondly, GPS Marketing offers a customized website for their
non–captive independent agents. This website will help the agent stay in contact with not only their
existing clients but also those clients that they may not have sold anything to just yet. Having new
technology such as a website will help agents keep in contact with their clients via email rather than

just trying to keep in contact with their existing clients by phone and what some people call snail
mail. GPS Marketing will actually do most of the work for the agent. This

Investing in a Plan for Retirement: Are You Prepared for...
Options for Retirement
The majority of people age 65 or older in the United States are still working in full time positions.
This opens the question if they planned for retirement, or what if anything went wrong while
working? How do they feel about still having to work? Have they taken proper steps in preparing
for retirement? Are they only working to pass time? These are the questions that everyone should be
asking themselves about their own retirement plans, and what they have done to financially prepare
for that stage in their life.
It is never too early to start planning for the retirement. In today's economy there are no guarantees
that there will be sufficient funds coming from Social Security when an individual reaches the time
... Show more content on Helpwriting.net ...
In the private sectors retirement packages do not transfer between different companies; therefore if
an employee decides to switch careers after working for twenty years chances are their accrued
benefits package will not be transferred to the new company. Predicting the future is impossible, no
one will know if a company may go bankrupt or expand, but there is a plethora of ways to ensure a
comfortable retirement will be available when that point in life is reached.
Planning, just like saving for the future does not always come natural to a person and a lot of times
has to be recommended by professionals. It takes personal discipline along with dedication to follow
a good retirement plan. In order to achieve personal goals for retirement there has to be a plan of
action to obtain success. Proper planning for retirement will also provide a positive outlook for that
stage of life.
In the beginning stages of planning personal attainable goals should be set. They can be short term
or long term goals, depending on what is necessary to stay on track and maintain focused. Many
retirees consider relocating due to the cost of living expenses at their current location, wanting to
live closer to family, or simply to a place they had always dreamed of spending the rest of their lives
at.
To be able to figure out the amount of income needed, the preferred lifestyle should also be
considered when starting to draft a retirement plan. A financial advisor

Victoria Heavy Equipment Case Essay
Victoria Heavy Equipment's most recent organization has been lacking effective communication
practices amongst all of its divisions. The company has been suffering from lack of clear goals in
measurable terms, for its divisions. The idea of each division functioning as an independent unit,
whether it being cost or profit center, is a remarkable beginning. However, clear goals and key
measurable need to be set for each center, which in our case have been overlooked. As a result,
many of these centers have over spent, resulting in over expenditures, something we can definitely
not afford with anticipated slower market.
Brian Walter Jr. had a great vision of not turning into "bureaucratic, quantitatively, grey–suited
manager ...", yet the ... Show more content on Helpwriting.net ...
This clearly indicates miscommunication between R&D and Finance.
In addition, better communication was required at time of design of LTM–1000 between marketing
and ultimately our customers to first of all build what our customers wanted. Rather than creating a
monster that was assumed was what our customers would buy. Second, should there existed an
effective communication guidelines between finance, marketing and R&D at the time, we possibly
could have convinced LTM 1000's target customer to foot the bill for some of development and
prototype costs. I am quite aware that LTM 1000 was on Brian's Want–List which could not have
been disregarded but with better consultation with other departments, it could have turned into a
more sellable product rather than a successful crowd–magnet.
First step is to set, agree and emphasize on our hard goals as a team. These goals are not expected to
be too different form the ones set by Brian for V.H.E. After that, each division is expected to present
their SWOT or a similar analysis for their individual center. Once these tasks have been completed,
each individual center manager and I can set and agree on hard goals for that division along with a
specific strategy to reach those goals. For example, the goal of reducing waste, including, high level
inventory will be on the hard goals list for all profit centers. Profit sharing plan will be re–written to
reward

Compensation Mid Term
Name: Yunjia Zhang Syms School of Business Tax 6145 Deferred Compensation and Employee
Benefits Fall 2014 Midterm Fill–in 2 pts each 1. The qualification requirements are intended to
prevent discrimination in favor of highly compensated employees, 2. The age and service
requirements require that an eligible employee participates in the plan no later than the attainment of
age____21______ and_____2 year(s) of service. 3. A contribution to a qualified retirement plan
("QRP") is income tax deductible if it is made no later than __due of tax return(April 15th) OR 60
extension days___________. 4. Under the dual entry method of plan participation, a QRP's entry
dates are usually the first day of the first plan year ... Show more content on Helpwriting.net ...
With a profit–sharing plan, total contributions cannot exceed the lesser of $50,000 or just 25 percent
of your salary. b. List 4 distinctions between a defined benefit plan and a defined contribution plan.
A defined benefit plan identifies 1. the specific benefit that will be payable to you at retirement. 2.
Your basic retirement benefit is usually based on a formula that takes into account factors like the
number of years a participant works for the employer (years of service) and the participant's salary.
3.Your retirement benefit is generally provided in the form of regular payments over your lifetime
beginning at what the plan calls "normal retirement age," which is typically age 65. 4. employer has
higher expense and long–term obligations associated with running a defined benefit plan. A defined
contribution plan 1.specifies how much money will go into a retirement plan today. 2.The amount
typically is either a percentage of an employee's salary or a specific dollar amount. 3. Then, those
funds often are invested in mutual funds available inside the retirement plan. 4.The amount you
have at retirement depends on how much your employer contributes to the plan, how much you as
the employee save in the plan, how long you leave those funds invested, and how well your
investments perform inside the plan. c. List 3 distinctions between a qualified plan and a non–
qualified plan. A qualified plan compares to

Essay on Compensation and Benefits Strategy
Compensation and Benefits Strategy
Landslide Limousine (LL), a small business in Austin, Texas, hired Atwood and Allen Consulting
(AAC) to conduct a market evaluation and provide recommendations for the following: a position in
the market, a compensation structure, a total compensation and benefits strategy, and performance
incentives and merit–based pay to recognize and engage employees. This will help to identify
applicable laws related to pay and benefits. This paper includes citations from one peer–reviewed
book, three government websites, four commercial websites, and one University of Phoenix online
course material. Market Evaluation
Atwood and Allen's market evaluation found the average salary for a limousine driver in Austin, ...
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Position in the Market
The company's ability to pay is less than that of its competitors and will remain constrained until the
company can establish a reputation and gain a share of the market (Cascio, 2013, p. 420), so the
company should position itself carefully in the market. LL should allocate 25% of its budget for
salary and benefits and use performance incentives, merit–based pay to keep fixed labor costs low.
LL should pay employees $9.33 per hour, which is $19,406 per year and is $2 per hour less than
industry average for Austin, Texas. The company should pay management a salary 5% higher than
employees to maintain the balance of compensation rates (Cascio, 2013, pp. 423–424). The
company should use additional benefits, performance–based incentives, and merit pay to attract,
retain, and motivate employees who share the company's vision and goals (Cascio, 2013, p. 423).
Total Compensation and Benefits Strategy The total compensation and benefits strategy of the
company should place an emphasis on compensation through incentives with a reduced fixed labor
cost. If the company is successful, employees receive additional compensation and if the company is
experiencing difficulty gaining a market share or if there is an economic downturn, the company has
a reduced labor cost (Cascio, 2013, p. 420). The company should not use pay grades because of
hybrid positions and maintaining the flexibility to modify job descriptions to fit the needs of the

Advantages and Disadvantages: 401k Plan to the Employer...
Advantages and Disadvantages: 401k plan to the Employer and Employee
A 401(k) plan is a retirement account to which employee and employers contribute, on which taxes
are deferred until withdrawal, and for which the employee selects the types of investments. As with
anything to do with the Internal Revenue Service, the 401(k) plan has many ups and downs and
many regulations that must be followed. This makes things more difficult for both the employer and
employee in making decisions about the plan. We have taken a look at the advantages and
disadvantages of the plan from both sides of the table to show what all is involved in deciding to use
a 401(k) plan. First, we take a look at the advantages to the employers to see if it is worth it ... Show
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IRAs, 401(k),s 403(b),s and other employer–sponsored plans are all considered tax–advantaged by
the Internal Revenue Service. All contributions grow tax–deferred until they are withdrawn, which
means that money will grow faster than in a currently taxable investment earning the same rate of
return. If you need your retirement assets now, and are prepared to pay the tax bill that result 's, you
may ask your employer to pay them to you in a check. However, before you do ask for a check, you
may want to compare the impact of paying taxes today versus continuing to defer taxes
(www.psca.org)
Automatic payroll deductions make it easy to build a retirement nest egg with affordable deductions.
401(k)s make saving convenient because the money comes directly out of your paycheck before you
ever see it. This helps you make saving a priority. Also you do not see the money so you are not
tempted to spend it. If you make bad choices when compared to the competition, you make yourself
less attractive to potential talent. Record keeping can be a very big disadvantage to an employer
offering the 401(k) plan. The cost can become very high and requires the organization to hire new
employees to handle this job, not to mention that if they mess up somewhere it could cause many
problems. They might lose some of the employee's money, or give them more than they should
have. The problems that could occur are

Benefits Of 401 (K)
401(k) plans are the normal retirement plan offered to employees of a public or private for–profit
company. A regular 401(k) plan will withdraw money from your paycheck before taxes are taken
out, which will lower your taxable income and usually your tax rate. However, there are options that
take money out of your paycheck after taxes are taken out, including an option that is growing in
popularity called a Roth 401(k).
One of the benefits of a 401(k) plan is that the IRS has a higher limit on the amount of money that
can be contributed annually than with Roth IRAs. For the 2015 tax year, that amount that can be
contributed by the employee is $18,000 for people under 50 years old and $24,000 for people 50
years old and older. Because employers usually make matching contributions, the maximum total
contribution for 2015 is $53,000. ... Show more content on Helpwriting.net ...
The money usually goes to a third party administrator to be invested, so while these plans tend to
grow over time, their value is also affected by investment markets. The portfolio associated with
your 401(k) should be well–diversified and not too heavily invested in your own company. Fees are
another factor that can take up part of the money that you set aside for retirement. That means you
should frequently inspect the portfolio associated with your 401(k) plan so you can request changes
to anything that makes you uncomfortable.
401(k) plans are among the most popular ways for employees to save for retirement. Employers
often make matching contributions up to 6% of your salary and, in fact, yours is likely to encourage
you to enroll if you haven't already for compliance reasons. The tax incentives and the fact that
contributions are automatically taken out of paychecks make this a good way to save up for
retirement without really having to think about

Retirement Plan For Retirement Plans
Retirement Plans
An example of a type of retirement plan is, the EBRI. They have been conducting Research since
it's founding in 1978. Funding, Capital Markets, Program Coverage, and Participation in income
adequacy is a tool used for Retirement Plans. There are many different types of Retirement Plans.
Such as Defined Benefit Plans, Defined Contribution and Participant Behavior Programs, and
Individual Accounts. There are even ways to protect your plan. Such as Retirement Security
Projection Model. Which is used to model the expected income derived from such things as Social
Security, Gender, and Family Status. To meet the needs of all clients filing for a retirement plan,
valuable tools are used to assess the entire financial picture. Not just Retirement Holdings. Some
companies such as chase, offer both Traditional IRA's and Roth IRA's for those looking to establish
and contribute to a tax–advantage retirement plan. Which will help get an estimate for someone
looking to see how much money they will need for retirement. And both IRA's can be offered due to
being able to maximize advantages of plans. For further depth into IRA's, here is what they are in
general. It's a good choice if one is eligible to make deductible contributions and expect your tax
rate during retirement to be lower than it is in today's economy. Because with this type of
investment the growth in the tax is deferred. You won't pay federal income taxes on your deductible
contributions or any

It's A 401 (K) World Analysis
In the New York Times article " it's a 401(k) world", Thomas L Friedman states how technology has
advanced to the point where anyone can track anyone else's form of activity. Friedman States the
good and the bad of this new era of technology. He tells us how certain people will make a living in
this type of world. Living in this world with new technology, it could either make you or break you.
Friedman's many facts makes me agree with what he has to say.
Friedman tells his audience how technology is used nowadays for anyone wanting to improve
themselves. Because of these changes people are now required to be more educated if they want to
succeed in this so–called "401(k)" world. He states that " job started changing much faster, requiring

Components Of Every 401 (K)
Components of Every 401(k) Plan What are the "moving parts" in your Plan? You may not know the
components of a 401(k) plan, or, at this point, maybe you are unable to identify them. The
terminology in our industry is often misunderstood and misapplied. Jargon like 'plan administrator',
'trustee', 'custodian', 'recordkeeper', and 'TPA' are often used interchangeably and communication is
confusing, with some of your service providers using different terms to refer to each other. Providers
that offer 401(k) services in a "bundled" product to businesses may function in multiple roles or
even all the roles. This only adds complexity to an already confusing structure that lacks
transparency. Therefore, we try to clear up the confusion by

Employer Sponsored 401 Essay
The legislation that permits employers to automatically enroll new employees in employer
sponsored 401(k) plans is commonly known as the Pension Protection Act of 2006 and is public law
number 109–280. Pension Protection Act of 2006, P.L. 109–280, § 902, 102 Stat 780 (2006).
This change was made due to the fact that many eligible employees did not participate in their
employer sponsored 401(k) plans. By allowing employers to automatically enroll employees in
employer sponsored 401(k) plans the government hoped that more employees would participate in
these programs.
An automatic enrollment plan must meet requirements regarding: (1) automatic deferral, (2)
matching or nonelective contributions, and (3) notice to employees. The joint committee report
states:
(1) A qualified automatic enrollment plan must provide that, unless an employee is treated as
making an election to make elective deferrals equal to a stated ... Show more content on
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(2) In order to satisfy the matching or nonelective contributions requirement employers must either
meet the matching contribution requirement or make a nonelective contribution to a defined
contribution plan of at least three percent of an employee's compensation on behalf of each
nonhighly compensated employee who is eligible to participate in the automatic enrollment plan. A
plan normally satisfies the matching contribution requirement if the employer makes a matching
contribution on behalf of each nonhighly compensated employee that is equal to 100 percent of the
employee's elective deferrals as do not exceed one percent of compensation and 50 percent of the
employee's elective deferrals as exceeds one percent but does not exceed six percent

401 K Retirement Plan Essay
Retirement plan has its advantage and disadvantage. Mostly it is based on the choice of the
participant. It is the right of the member whether to choose it or decline. The 401–k retirement plan
builds on the retirement plan sounds likes to replace for pension, but not. The 401–k plan should not
necessary for all employees because it is beneficial based on age and employment history and no
beneficiary is allowed.
The 401–k plan is useful based on the age and age of employment history. It is right to choice this
plan for the people those are at the age of 45 or more. It is not okay for the people the age of me. It
is not beneficial for me because the company where I am recently working I am not going to spend
my lifetime there. Once I changed my job and withdrew the money from the plan, I have to pay a
huge penalty. I have personal experience with the 401–k retirement plan since I have attended an
orientation about it. As per the orientation it I knew ... Show more content on Helpwriting.net ...
The plan I know like life insurance even some saving plan allows the beneficiaries. Since the
beneficiaries are not allowed so, nobody should be permitted to make a claim if something happens
to the principal planner died. For example, if I invest $ 100000 up to the age of 64 and I died then
nobody from my families are permitted to make a claim. If none of my family shouldn't take
advantage of my saving then why to this kind of saving. Instead of this plan, it is better to buy stock
or bond where at least we are provided with beneficiaries.
Though this is the big project, does not allow any beneficiaries means the program looks like
profitable organization. Maybe this based on active team concerning the average life expectancy of
American people or either based on the death rate of people date at the age between 40 to 50 years.
Thus, this program has its own profitable business, but it's in the opinion of the participant how they
like this plan and also it is not

Why Employers Need To Be Defined Contributions
A pension is my first retirement plan. Pension is or can be one of the most effortless retirement plan,
because little effort is required of you. With a pension the employer contributes all the money during
employees working life. Usual a fixed amount, paid at regular intervals to a person or surviving
dependents. This amount can also be paid by the government to a person who is old or sick and no
longer works.
Defined Contribution Plans is a type of retirement plan in which the employer, employee or both
make contributions on a regular basis. A certain amount of money is set aside each year by company
for the benefit of the employee. There are restrictions as to when and how you can withdraw these
funds without penalties. The employer generally ... Show more content on Helpwriting.net ...
But reality is I really don't have that promised to me, to be able to work till that age so maybe an
IRA would suit me better as far as putting money aside right away would give the 7 years or less to
have some money put aside to be able to leave my dependent something. By increasing my cash
reserves monthly prepare for delays by having extra money tucked away. Estimating how much
money I need to retire accurate amount of money I spend and amount of income I will have each
month. Evaluate tax consequences will I be lower bracket in a few years? Then I will be sure to
maximize tax deductible contributions

Case Study : Mad Performance Team Essay
Introduction Congratulations on becoming a member of Melchor's Mad Performance team. Here at
Melchor's Mad Performance, We provide the best quality and safety for our customers
circumstances. We will not be happy until our customer and sponsors are satisfied with our work.
No matter the possibility of out customers and sponsors need they deserve to be satisfied with our
work. As an employe of Melchor's Mad Performance we have some expectation from our
employees to give our customer what they need in the in the certain amount of time that they
provide. We also expect for your work place to look as neat and clean as possible. Failure to keep a
clean workplace may result in damage to customers property or physical harm to yourself and/or
your co workers. These are some of the most important expectation that we request from you to
have a professional environment as well as a safe environment. Further expectation will be read in
further along the Employe hand book. This Employe Handbook will provide you most of the
questions that you may have about the shop rules and work related issues. Further questions can be
asked to the owner of the shop or managers. If we are not available at the time for any reason feel
free to contact us with an email to MelchorMadPerformance@gmail.com. Thank you, Melchor
Mendoza

401 K 401 : 401k Fund Essay
Keywords
401 K
401K
401(k)
410 (k)
401K Fund
How Much Do You Need To Have Saved For Retirement?
Before starting, let's understand one thing. The amount you have in your retirement fund right now
has nothing to do with how much will be there when you retire. Just because you are making poor
quality contributions now means nothing, you may become very rich next year and start topping up
your 401K like a member of the Hollywood elite.
You may add a minimal amount until the age of 60, whereupon you make some smart investments
outside of your 401K and increases your savings by tenfold so that you do not need your retirement
fund anymore. Do not limit your investing and your future wealth building to your retirement plans.
H3 Save, Invest, Work Hard And Earn
In addition, while saving in your 401K, you should also be saving, working hard and investing so
that you do not have to rely on it when you retire. Think of it more as a backup account for if your
current wealth building methods do not pan out. With that said, here is how much you need to have
saved in your 401K for your retirement.
H3 What About The Old "One Size Doesn't Fit All" Saying
I have read many articles that say the amount you save for retirement depends on X, Y and Z. They
all say that one size doesn't fit all, but we are not saying that. In this article, you will see solid
numbers and you will see usable percentages that you can apply right now to your 401K savings
plans.
H3 What Is Your 401K Fund

Case Study Art of Motivation
HUMAN RESOURCE MANAGEMENT
THE ART OF MOTIVATION
Human Resource Management MRB 2032
Case Analysis 3
THE ART OF MOTIVATION
EXECUTIVE SUMMARY
This article is about the art of motivation in Nucor, about strategy and action plan to motivate the
people such as talking to them, listening to them, taking a risk on their ideas, and accepting the
occasional failure. It 's a culture built in Nucor with symbolic gestures with unblinking focus on the
people on the front line of the business in order to maximize profitability. Nucor has foster one of
the most dynamic and engaged workforces around. The nonunion employees at Nucor don 't see
themselves as worker bees waiting for instructions from above. Nucor 's organizational structure ...
Nucor was the first in the industry to adopt a number of new products and innovative processes.
Nucor's strategy can be elaborated as follows;
Performance Based Compensation Strategy
Compared to the other competitors Nucor provided employees with a performance–related
compensation system. All employees were covered under one of four basic compensation plans,
each featuring incentives related to meeting specific goals and targets. 1. Production Incentive Plan.
Employees those directly involved in manufacturing were paid weekly bonuses based on actual
output in relation to anticipated production tonnages produced. The bonuses were paid only for
work that met quality standards and were pegged to work groups, rather than individual output.
Bonuses were tied to attendance and tardiness standards. If one worker's tardiness or attendance
problems caused the group to miss its weekly output target, every member of the group was denied
a bonus for that week. If they are late, even only five minutes, they lose their bonus for the day. If
they are thirty minutes late or they are absent for sickness or anything else, they lose their bonus for
the week. 2. Department Manager Incentive Plan.
Nucor's department managers oversaw the production supervisors and, in turn, reported directly to
the general manager of their plant. They earned an annual incentive bonus based on

Evaluating The Employee Benefits Options Available For Our...
The purpose of this assignment is to evaluate the employee benefits options available in our current
job market and provide a solution for Crangle Fixtures. This trend of shifting benefit costs to the
employees is not new, I saw it happened in 1990 but it is not a popular decision and has been
increasing in the market due to the health care reform. I found several articles discussing this trend
and for example the ADP Research Study published the following in 2010: "The 2010 MetLife
Study of Employee Benefits Trends showed that employee loyalty had declined year over year, and
was, at the time of the study, at a three–year low. Our survey findings suggest there may be a link.
Many of the HR/benefit decision makers we surveyed indicate that shifting health care costs to
employees has had a negative impact on morale and job satisfaction. This is not surprising given
that benefits cost–sharing hits employees where it hurts the most – in the paycheck."("Talent
Management Challenge," n.d., p. 1) To begin this assignment I need to determine what kind of
benefits are acceptable and moreover competitive for the fixtures' industry. The Bureau of Labor
Statistics published this information in 2014: "The median annual wage for all workers in
manufacturing was $37,690 in May 2013, higher than the $35,080 median annual wage for all
workers. In some occupations, workers have higher wages in manufacturing than they do in other
industries. For example, in May 2013, general maintenance

The Demand And Supply Of Financial Services For Retirement...
The purpose of the paper is to provide a better understanding of the demand and supply of financial
services for retirement system of United States, with a specific focus on the needs of small
businesses. 1.2 ACRONYMS DB – Defined Benefits DC – Defined Contribution 2 BRIEF
HISTORY OF RETIREMENT PLANS Until the late 19th, the idea was to work until you die or
until you can't work anymore. However, in 1889 a German Chancellor Otto vin Bismarck
introduced in Germany the pension plans, not because he was compassion for the working class but
because he wanted to pre–empt a growing socialist movement in Germany before it grew more
powerful. Later, the idea of providing financial security for aged gradually expanded in Europe,
United States and other advanced economies. In 1875, American Express offered America's first
employer–provided retirement plan. Five years later, the Baltimore and Ohio Railroad introduced
the first retirement plan, financed jointly by contributions from an employer and its workers. After
World War II, as life expectancy reaches lengths American government couldn't have imagined,
United States started struggling with government pension plans they can no longer afford.
Therefore, private plans became more common. 3 DIFFERENCE OF RETIREMENT PLANS
There are many types of retirement plans but the most common are Defined Benefits Plan, most
known as pension plans, and Defined Contribution Plan. 3.1 DEFINED BENEFITS PLANS It is an
employer–sponsored retirement

Compliance-Related Performance Standards: Achieving...
Yes, Walmart's compliance–related performance standards would ensure ethical conduct (Noe et
al.,416). This is because the executives are being rewarded for upholding ethical standards. With an
incentive to maintain rightful behaviors, employees will have less desire to defraud, use bribery or
commit any other unethical activities, putting their pay and the company's reputation at risk.
Executives can simply do the right thing and be rewarded for it. However, the reward must be
enticing enough. If not, then when an opportunity for more money comes around, a person may be
interested in conducting unethical behavior to receive an improved raise. Likewise, the company
should compensate the members properly, because if they are struggling financially ... Show more
content on Helpwriting.net ...
A profit sharing plan could be considered a group incentive because the employee has to work
together, cooperate and share knowledge to receive individual bonuses. However, a group incentive
program, such as gainsharing is measured by improvement in productivity and effectiveness. This is
unlike the profit–sharing program in Bob's Red Mill. In the profit–sharing program, employee's
bonuses depend on the company's profits. If the company has increased profits, then employees get
a percentage of these earnings. On the other hand, if the company performs poorly than employees
receive nothing. Yes, this requires employees to work together as a group, but in general, the profits
are dependent on the company's success, not the group's success. Likewise, the last incentive
offered, the employee stock ownership program, is based on the company's performance as well.
Here, employee's incentive pay is solely based on the company's performance. Yes, both the
individual and group performance play into how the company performs. The individuals and teams
must work together and perform sufficiently in order for the company to perform well. Yet, if an
employee or team performance slacked, the direct result would be a hardship against the company.
In which case, would cause the employee's stock to plummet. In general, how the company
performs, as a whole, depends on the employee's stock worth. Thus the stock ownership program is
dependant on the

Benefits And Benefits Of Yahoo
This paper explores the benefits offered at my organization. Yahoo provides a benefits package that
includes Medical, Dental, Vision, Life Insurance, and Disability. In addition, there are supplemental
and voluntary benefits that have become "industry standard" offerings based on larger competing
organizations. (Levin–Epstein, 2011) Working in the technology industry, the recruitment and
retention efforts drive benefit offerings to be highly competitive. This requires consistent review of
turnover causation in correlation to accessible benefits. Examples of newly recognized benefit
offerings that are now considered 'industry standard' are adoption assistance, tuition reimbursement,
and sabbaticals. Additionally this paper will identify quantitative and qualitative methods to
evaluate effectiveness, utilization, and employee satisfaction in regards to recommended changes or
additions to these benefits. MSHR 640 Term Project – Current Benefits & Recommendations My
organization offers some standard benefits as well as some extra benefits to set them apart as an
extraordinary employer. The 'standard' medical package includes Medical, Dental, Vision, 401k and
Disability insurances. All full time employees that are not considered contractors are offered
enrollment on the first day of employment up to 31 days from your hire date to select your benefits;
however your effective date is the day you start. If you do not make any elections, they will
automatically enroll you in

Individual Employment Opportunity Act An Employer
Compensation is one of the most important aspects of business. It attracts, motivates, and retains
skilled employees; therefore, evaluating compensation correctly to meet the needs of the business
and satisfy the wants of the employee is also extremely important. The aspects that Echo Inc. should
consider when evaluating their compensation practices are the different limitations placed on pay,
the benefits that are required by the government, optional benefits, and the different pay for
performance plans.
When considering how to pay employees, a business must factor in the legal requirements of pay
placed by the government. Government regulations affect pay by implementing the equal
employment opportunity, minimum wage, overtime pay, and ... Show more content on
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Although, company's do not have to pay salary workers for over time. Two additional federal laws,
the Davis– Bacon Act of 1931 and the Walsh–Healy Public Contracts Act of 1936, govern how
much federal contractors are paid. The calculation of prevailing wages at which federal contractors
must be paid is thirty percent of the local labor force. These regulations must be taken into
consideration when deciding an employee's base pay. There are various pay level strategies to
choose from including: lead the market, match the market, lag the market, hybrid, employer of
choice, or cafeteria plan. Setting higher wages than competitors helps attract quality applicants in
larger quantities. It also increases employee's work efforts, reduce turnover, and lower monitoring
costs. While high wages are beneficial to the employees a business determine if they can afford to
pay a higher wage, or if the money could be better used somewhere else within the company.
The government not only places certain limitations on pay they also require employers to provide
certain benefits. These required benefits are social security, unemployment insurance, workers'
compensation, unpaid family and medical leave, and health care benefits. The Social Security Act of
1935 provides that if a worker meets certain requirements they will receive retirement benefits that
are based off their age and earning history. Over 90% of U.S. employees are covered under this
program. The Social Security Act also

Employer 401 Case Study
We often ask the question, "How does our 401(k) plan stack up?" When you are an employee, you
will consider items such as the investment choices, administration fees, or loan terms. However, if
you are an owner, the most important thing to think about may be how to contribute the highest
amount you can under Section 415. For 2016, the defined contribution plan annual addition limit
without catch–up is $53,000, and will rise to $54,000 next year.
The Internal Revenue Code (IRC) subjects qualified employer plans to compliance testing.
Employer 401(k) plans must pass the "actual deferral percentage" (ADP) test, and if there are
employer match contributions, the "actual contribution percentage" (ACP) test. However, safe
harbor plans are not subject to discrimination testing if the plan sponsor contributes a pre–approved
safe harbor employer contribution.
Safe harbor plans guarantee that the Highly Compensated Employees (HCEs) will be able to
contribute the maximum deferral amount of $18,000, but not necessarily the maximum annual
addition under Code Section 415. In those cases, the triple stack match formula may be the solution,
as follows:
Stack One: 100% of the first 3% of deferrals, plus 50% on the next 2% of deferrals. That means that
if an employee defers 5%, they will receive the maximum 4% of compensation match on the first ...
In addition to the requirements discussed above, it is important to remember that none of the stacked
matches can require a 1,000 hour of work or employment at year end. Stack One also cannot be
subject to vesting, as it must be fully vested to qualify as safe harbor. Provisions for the triple stack
match must be in place before the start of the plan year in which they are

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