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Employee Benefits

Cafeteria Plan

Definition: An employee benefit arrangement allowed by IRS Code Section 125, under which employees are allowed to pay for certain employee benefits on a pre-tax rather than an after-tax basis.
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Compensation

Definition: In financial terms, the salary and wages you pay to your employees for the work they do. Other, nonfinancial forms of compensation can also be offered to attract and retain staff.
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Benefits

Definition: A product or service's customer-oriented strengths; statements of a valuable product or service feature, with an emphasis on what the customer gets from the products
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Bonus

Definition: A monetary payment made to an employee over and above their standard salary or compensation package
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Employee Stock Ownership Plans (ESOPs)

Definition: A trust set up by a company to allot some of its stock to its employees over time. Used as an employee incentive, the plan often provides tax benefits to the company.
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KEOGH Plans

Definition: A pension plan that lets business owners contribute a certain portion of their profits or a predetermined annual contribution to a tax-sheltered account, where the funds grow until retirement
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Retirement Plans

Definition: An arrangement to provide people with an income during retirement when they're no longer earning a steady income from employment
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