Solo debe hacer unos cuantos clics.
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Another common question is “What is compensation vs. salary?” An employee’s base salary involves the money they earn for their job. Compensation includes an employee’s salary, but also the other benefits they receive through their job. Salary is just a piece of compensation.
Types of Compensation
There are many types of compensation:
- Insurance compensation includes payments for losses that are covered by your insurance policies. One insurance compensation example is your workers’ comp coverage. What does workers’ compensation mean? If you have a workers’ compensation policy and one of your employees is injured on the job, that policy will compensate your employees for their medical treatment costs.
- Overtime pay involves paying employees for the work they do outside of their 40-hour work week.
- Retirement packages are benefits that you may offer employees if they agree to retire at a certain time. Typically, payments will last for an agreed amount of time which can be weeks, months or years.
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Example of Compensation for Insurance
What is meant by compensation? The term “compensation” in seguro para pequeñas empresas refers to the amount that the insurance company has agreed to pay for covered losses that are stated in your policy. So, if you have a business income insurance policy with a coverage limit of $10,000, that’s how much your policy will pay if you need to temporarily shut down from a covered loss, like a fire.
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