A common law employee is someone whose work and duties are controlled by an employer, not just in results but also in how tasks are performed. This definition helps distinguish employees from independent contractors for tax and legal purposes. Employers of common law employees are responsible for payroll taxes, benefits, and labor law compliance.
Base salary is the predetermined amount of money an employee receives for their work, typically expressed as an annual figure. It does not include variable components like bonuses, overtime pay, or allowances. Base salary provides financial stability and forms the foundation of an employee’s overall compensation.
Back pay refers to wages that an employer owes an employee for work already performed but not properly compensated. It may result from payroll errors, underpayment, wrongful termination cases, or delayed raises. Back pay ensures employees receive the full amount they are legally entitled to.
An allowance is a set amount of money provided by employers to employees in addition to their regular salary. It is usually given to cover work-related expenses such as housing, transportation, or meals. Allowances can be taxable or non-taxable depending on local labor and tax laws.
Accrued payroll is the total amount of wages, bonuses, and benefits employees have earned during a period but haven’t yet been paid. It is recorded as a liability on the company’s balance sheet until payment is made. This practice ensures financial accuracy and shows the company’s short-term obligations to its workforce.
Accrual payroll is the accounting method where employee wages, benefits, and related expenses are recorded when they are earned, not when they are paid. This ensures accurate financial reporting and helps businesses match payroll costs with the correct accounting period. It provides a clearer picture of a company’s obligations and cash flow.
The 14th Month Pay is an additional salary payment some employers provide on top of regular wages and the 13th month pay. It is often given as a mid-year or year-end bonus to reward employees and boost retention. While not mandatory in all countries, it is a common practice in parts of Europe, Latin America, and Asia.
A decade ago, employee well-being was something often looked upon as "good to have"-you would maybe have lunch-time yoga class, free snacks, or an annual mental health awareness session. Fast…
Payroll is a highly sensitive area in every company. If there is an error in paying amounts erroneously, altering or taking deductions wrongly, not filing taxes on time, and so…
The Universal Account Number, once viewed as a feared term, has made EPF-account management a breeze over the years. A member must make sure his UAN is active by 2025…
As business landscapes change rapidly, consequently workforce strategy has become more critical than ever. Manpower planning once considered a routine HR exercise is now a strategic function that directly influences…
Notice periods are one of the most important yet often misunderstood parts of employment contracts. They define the timeframe between when an employee resigns (or is terminated) and their official…
Globalisation is no longer just about moving goods across borders it’s about integrating economies, cultures, politics, and technology on a worldwide scale. For businesses, this integration creates opportunities to expand,…
Managing people efficiently is one of the biggest challenges for modern businesses. With distributed teams, remote work, and growing compliance demands, manual HR processes are no longer sustainable. That’s where…
Payroll compliance has become a global challenge for HR and finance leaders. While basic salaries are straightforward, certain mandatory payouts like the 13th month pay can create confusion for both…
Hiring strategies are evolving rapidly in 2025. While indefinite employment contracts remain the norm, businesses are increasingly turning to fixed term contracts to manage workforce flexibility, project-specific roles, and compliance.…
Managing employee expenses has long been one of the most complex and error-prone areas of HR and finance operations. Lost receipts, manual reimbursement approvals, and inconsistent policy enforcement often lead…
Employee separation is one of the most sensitive aspects of HR management. While hiring and onboarding often take the spotlight, how organizations handle workforce reduction speaks volumes about their compliance…
Compensation strategies have evolved rapidly over the last decade. In 2025, organizations are no longer relying solely on fixed salaries to attract, motivate, and retain top talent. Instead, variable pay…
In today’s fast-paced workplace, constant distractions, overflowing meetings, and digital overload have become the new normal. Employees often juggle multiple tasks but struggle to achieve meaningful output. For HR leaders,…