From the course: Finance and Accounting Tips

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Components of a compensation package

Components of a compensation package

From the course: Finance and Accounting Tips

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Components of a compensation package

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- When folks think of compensation, they typically think of their base salary. We see this all the time as our students graduate and go looking for a job. They ask the question, how much will I be paid? - There's much more to a compensation package than just a base salary. We want to take a moment and discuss some of the most common elements of an entire compensation package. - The first is salary. How much will you be paid on a regular basis? This amount, less taxes and such, determines your take-home pay. That's how much you'll have available to spend. - [Kay] Another component of a compensation package can be a monthly, or quarterly or annual bonus. This can be a function of your performance, and/or the performance of your department, your division, or the company as a whole. - This amount is subject to taxes just like your base salary, so don't spend it all until the tax man has taken his share. - [Kay] Then there's insurance. Medical insurance, dental insurance, life insurance…

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