The company makes payments to its employees twice a month in the periods from 1 to 16, and from 26 to 30. However, individual payment dates may be considered when filling out the form provided for in the company’s charter. For example, an employee may receive payments once a month or once a week. Nevertheless, a service charge is made with each fee, which the company pays to the bank to ensure the withdrawal of funds. The more often the employee will demand a salary, the higher will be the number of deductions from his payments.
It is also important to note that the type of receipt of fees must be determined for the year if an employee receives a fixed salary, as the amount of pay will be divided by the number of payments made. If the worker gets payment for one working hour, then he will get a refund precisely for the number of hours that he worked during the payment period. The frequency of the amount and type of salary (hourly or fixed) depends on the position or can be determined individually. The company makes regular payments by direct deposit electronically without checks.
The paying company transfers periodic payments directly to the recipient’s account with a deposit institution. The company, or the executor acting on its behalf, performs data processing and makes credit entries reflecting the transfer of payment to a deposit. The represented type of receiving salary reduces the risk of loss or theft of checks, allows an employee to start an earlier accumulation of interest, provides an immediate receipt of funds, and reduces processing costs for both the payer and the paying company.
The company levies the lowest possible deductions from its employees; for example, the employee himself has the right to determine the frequency of payments and, accordingly, the size of the bank charge. Nevertheless, the employer deducts some necessary amounts from the specialist’s salary. Such as deduction for office maintenance or the presence of a parking space. Premiums and fines are also individually assigned, which the employer calculates independently for each worker. Thus, each employee himself determines the number of deductions, except for mandatory fees (banking and office maintenance). Employees must also pay income tax, depending on their salary and marital status.
Moreover, the company cares about the health of its employees and provides each worker with health insurance. The company agrees with the insurance company, and it pays a certain amount monthly for the fact that the insurance takes on part of the medical expenses in case of illness. It is precise because medicine without insurance can be costly, and having proven health support is a definite advantage. Furthermore, according to studies, in the presence of low-cost healthcare, employees are more likely to undergo regular examinations, monitor for chronic diseases, and go to the hospital in case of diseases (Sommers et al., 2017). Insurance helps to improve the well-being of employees and provide care for their physical condition.
Unless all mandatory benefits, the company offers deposit insurance for employees who work in the organization for over a year. According to economists, the presence of deposit insurance reduces the risk of theft of money and also provides security for depositors in the event of bank bankruptcy (Martin et al., 2017). Since the financial safety of employees is an essential part of the organization’s work, the provision of deposit insurance will help its subordinates always remain in a secure position.
Martin, C., Puri, M., & Ufier, A. (2018). Deposit inflows and outflows in failing banks:
The role of deposit insurance. National bureau of economic research working paper no. 24589. Web.
Sommers, B. D., Gawande, A. A., & Baicker, K. (2017). Health insurance coverage and health: What the recent evidence tells us. New England Journal of Medicine, 377(6), 586–593.