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Freisleven Corporation has undertaken a cost study of its operations. One area of concern to the...

Freisleven Corporation has undertaken a cost study of its operations. One area of concern to the company is the total cost of labor, particularly the cost of employee benefits. Prepare a list of the different kinds of costs that a company might incur as part of its “total package” salary cost. Support your analysis

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One of the prominent costs that a company can incur for its opertions are employee benefits. A company need to reward its employees with salary in return of their services in the course of employment. The employee benefits given to the employees vary according to companies.

The list of different kinds of costs that a company might incur as part of its total package salary costs are:-

1. Basic Salary

2. Dearness Allowance

3. Travelling Allowances

4. House Rent Allowances

5. Other Allowances

6. Bonus

7. Gratuity

8. Retirement benefits

9. Employee Insurance and Provident fund

10. Overtime salary/ wages.

11. Performance Incentives etc

Suppose, take the example of Mr. A working with JJJ LLP, Texas. He is provided with the following employee benefits say:-

Basic Salary - $5,000

DA - $300

Travel Allowance - $350

Bonus during Festivals - $2,000

Here, the total CTC(Cost To Company) shall be $7,650 for the employee which means that the company incurrs this amount eyery year in respect of Mr. A.

ekkarill92 answered 2 years ago
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