Closing a business checklist

A 9/80 work schedule refers to a type of flexible work arrangement where employees work nine-hour days for eight days in a two-week period, and then enjoy one eight-hour day, providing them with an extra day off every two weeks. The total worked hours still equal 80 over the course of two weeks, thus maintaining full-time status. It's a strategy used by employers to improve employee morale and work-life balance while maintaining productivity.

Accruals, in terms of leave, refers to the process by which employees accumulate or earn time-off benefits the longer they stay in service. The accrual rates can be based on factors like number of hours worked, length of service, or type of employment. These benefits can be used for paid vacation, sick leave, or personal time off.

The Base Wage Rate refers to the minimum fixed compensation an employee receives for performing specific job responsibilities. It does not include bonuses, benefits, commissions or other forms of additional compensation. This rate is typically determined by the skills, experience and responsibilities required for the position.

Basic salary refers to the base income of an individual before any extras are added. This figure generally accounts for a large majority of the total salary, excluding bonuses, benefits, or overtime payments. This income is a fixed amount paid to employees for their services to the employer and is subject to income tax.

Biweekly pay refers to a payment schedule where employees receive their wages every two weeks, typically on a specific day such as Friday. This results in approximately 26 pay periods in a year. This payment method is one of the most common payroll schedules in businesses.

Compensation refers to the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. It includes elements such as base salary, allowances, reimbursements, bonus, stock options, and benefits such as medical insurance and retirement plans. Compensation is a primary motivator for employees, and it also represents a major cost for companies.

Compensatory Time Off refers to the policy of granting employees extra time off as compensation for extra hours they've worked beyond their scheduled working hours. Instead of paying overtime, businesses might adopt this approach to minimize costs. It becomes an alternative to paying employees overtime in cash while giving flexibility to employees.

Conditions of Employment refer to the terms and stipulations agreed upon by both employer and employee at the time of hiring. These typically include details about job responsibilities, remuneration, working hours, benefits, and policies for vacation, sickness, and termination. Both parties are obligated to abide by these agreed-upon conditions during the course of employment.

Contingency Recruiting is a recruiting method where the recruitment agency is paid only after successful placement of a candidate. It's especially beneficial for organizations as they are only required to pay if they find the right candidate. These agencies usually operate in a competitive framework where multiple agencies work to fill the same open positions.

A contingent worker is an individual who is not a full-time employee, but is hired on a temporary basis. This could include freelancers, independent contractors, consultants, or other outsourced and non-permanent workers who are hired on a per-project basis. These workers do not have the same legal protections as full-time employees, and their work contract is contingent on specific deliverables or a defined period.

A Direct Report refers to an employee who is directly supervised or managed by a particular supervisor or manager. The term corresponds to the relationship between the manager and the subordinate in a corporate structure. It emphasizes the straight-line of command and communication existing within organizational hierarchies.

Direct Reports refer to employees or subordinates who are directly supervised or managed by a particular boss or manager. They are the individuals that a manager is directly responsible for in terms of task allocation, performance appraisal and oversight. The term originates from the organizational structure of businesses, primarily focusing on hierarchical relations.

Employee Benefits Administration is the process of managing and overseeing the details of employee benefits packages in a company. This includes planning, organizing, and controlling the deployed benefits schemes which may consist of health insurance, retirement plans, vacation policies, and other perks. It is a vital HR function that involves communication with employees about their benefits and the overall maintenance of the programs.

Employee Evaluation, also known as performance review or appraisal, is a method employed by companies to assess the work performance of their employees. It provides a platform for supervisors to give constructive feedback on employee performance, identify skill gaps, and define future goals. Essentially, it forms an integral part of talent management and development in organizations.

Employee Relations refers to the efforts of a company to manage and improve relationships between the employers and the employees. This can involve activities like resolving work-related issues, ensuring job satisfaction, maintaining proper communication and managing performance and expectations. In a broader perspective, it plays a significant role in maintaining a productive and positive work environment.

Employee Type refers to the classification of an employee based on their job roles, functionalities, and responsibilities within an organization. Common employee types include full-time, part-time, permanent, temporary, contract workers, and freelancers depending on the hours they work and the permanency of their role. These classifications can greatly affect their benefits, compensation, and legal rights.

An employment contract is a legally binding document that outlines the formal agreement between an employer and an employee. This agreement defines the terms and conditions related to the job, including job responsibilities, salary, benefits, working hours, and termination conditions. It provides protection for both parties involved and helps prevent potential disputes.

Employment status refers to the classification of an individual working for a company based on certain predefined parameters. It often categorizes workers into areas such as full-time, part-time, temporary, contract, or independent contractors. The status is significant as it dictates various rights, benefits, and legal protections for the worker.

Exempt employees are categories of employees who are exempt from certain labor laws, including specifically from overtime pay provisions. This includes typically high-level positions such as executives, professionals, and outside sales employees. Their salary isn't based on the number hours worked and they aren't eligible for overtime, regardless of the amount of hours they work per week.

A Floating Holiday is a paid time off from work, granted by employers to employees at their discretion. Unlike standard public holidays, these days are generally determined by the employees themselves for personal use. The intent is to allow employees to celebrate holidays not recognized within the standard paid leave system.

The Family and Medical Leave Act of 1993 (FMLA) is a United States labor law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year. It also mandates that their group health benefits be maintained during the leave. This legislation is intended to help employees balance their work and family responsibilities by allowing them to take reasonable unpaid leave for certain family and medical reasons.

A Franchise Business is a business model where a person (franchisee) is given the right to operate under an established company's (franchisor's) trademark or brand for a certain period of time. The franchisee pays a fee or royalties to the franchisor for the right to do business under their name and receive ongoing support. This model allows for business expansion and brand recognition, since the franchisee is utilizing a proven business concept and established brand.

Gross wages refer to the total income earned by an employee before deductions such as taxes, insurance, and benefits are subtracted. It is the total compensation provided for the services rendered by the employee, including regular pay, overtime, bonuses, and commissions. The deductions taken from this total amount give the net pay, which is the amount an employee actually takes home.

Holiday Pay refers to employee compensation for designated holidays, such as New Year's Day, Independence Day, or Christmas, when the employee does not work. It is a type of benefit often included in a company's benefit package. The specifics, such as which holidays are paid and the rate of pay, can vary between organizations.

An hourly employee is a type of worker who is paid on an hourly basis, rather than receiving a fixed salary. The pay would depend on how many hours they work in a specific pay period and it usually includes payment for overtime hours as per federal or state laws.

Hours Worked refers to the amount of time an employee spends on job-related tasks in a specified period. It usually includes regular working hours, mandatory or voluntary overtime, and training hours. It's crucial for calculating compensation, benefits, and compliance with labor laws.

Indirect compensation refers to non-monetary benefits provided to employees, such as pension plans, healthcare, paid time off, or employee training and education. These benefits are a key component of an overall compensation package and can play a critical role in attracting and retaining employees.

Leave Accrual Processing refers to the system or mechanism followed by companies to calculate and track the leave time earned by their employees. The frequency of this calculation could be based on a predetermined timeframe - weekly, bi-weekly, monthly, or yearly. The process varies depending on the company policy and can include different types of leaves like paid time off, sick leave, vacation, etc.

Life Insurance is a contract between an insurance policyholder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policyholder typically pays a premium, either regularly or as a lump sum.

Medical Leave of Absence is a period of time in which an employee is allowed to be off work due to personal health issues or to care for ill family members. This often falls under laws such as the Family and Medical Leave Act (FMLA) in the United States, guaranteeing certain workers up to 12 weeks of job-protected unpaid leave. The employer is also required to maintain the employee's healthcare benefits during this period.

New Hire Orientation refers to the process of introducing newly hired employees to the workplace, culture, people, responsibilities, and policies of the company. It is a crucial HR activity that helps new employees to understand the expectations and to adjust smoothly to the new environment. This process can range from a day-long overview to an in-depth, week-long experience depending on the company and role.

The Occupational and Safety Health Administration (OSHA) is a federal organization within the United States Department of Labor. It is responsible for setting and enforcing standards to ensure safe and healthful working conditions for workers across industries. Additionally, the agency provides training, guidance and education to companies on maintaining safe work environments.

Paid holidays are days when employees are given time off from work but still receive their usual compensation. The specific holidays and the amount of paid time off allowed can vary by country, organization, and the employee's contract.

Paid Time Off (PTO) is a policy that allows employees to take time away from work and still receive their regular pay. It typically covers situations like vacation, personal time, or illness. This policy is more flexible than traditional separate systems of vacation days, sick days, and other time off because it pools all time off into one accessible bank for employees.

Parental Leave is a labor right that allows parents to take time off work to take care of their newly born or adopted child. Various countries have different legislations and policies regarding the length and payment during the leave. It promotes the balance of work and family life, and it's generally divided into maternity leave, paternity leave, and adoption leave.

A Pay Group refers to a classification method used by businesses to group their employees based on certain common aspects, such as hourly wage rate, salary type, or payment frequency. It's a vital element in payroll and compensation management, assisting businesses in customizing payrolls, compensation rules, and benefits for different categories or classes of employees. The creation of pay groups simplifies the process of payroll administration and ensures conformity with legal regulations.

A Pay Period is a recurring length of time over which employee time is recorded and paid. Examples of pay periods are: weekly, bi-weekly, semi-monthly, and monthly. The choice of pay period depends on the company's payment policy and the employment agreement.

Payroll Deduction is a term that refers to any amount deducted from employee's earning by the employer. It can include taxes, insurance premiums, retirement contributions, and deductions for employee benefits. These deductions are typically managed in accordance with government regulations and employment contracts.

Performance Management is a continuous process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. It involves activities such as setting clear goals, regular feedback, conducting regular appraisals, promoting employee skills development, and recognizing employees' achievements. The main goal is to improve employees' effectiveness and productivity to meet the company's overall mission and goals.

A salaried employee is a type of worker who is paid a fixed amount of money or compensation (salary) by an employer. Instead of being paid per hour, these employees receive their salary which is typically stated in annual terms. Benefits, expectations, and work hours may differ from hourly employees.

Salaried Non-Exempt is a category of employment where an employee is paid a fixed salary but is also eligible for overtime pay per the Fair Labor Standards Act (FLSA). This means that, unlike "exempt" employees who are not paid extra for more than 40 hours of work in a week, salaried non-exempt employees get overtime compensation. The non-exempt status is often due to the nature of the job duties or the level of decision-making power held by the employee.

Standard Hours refer to the typical amount of time that an employee is expected to work in a regular workday or workweek. It is the benchmark used to calculate wages, discern overtime, and allocate resources. Often, in many jurisdictions, standard hours are dictated by labor laws to ensure a fair working environment.

Straight-Time Pay refers to the regular compensation that an employee receives for the standard number of hours they worked, excluding any overtime or bonuses. This rate is usually defined in the employment contract and varies depending on the individual's job profile and experience. It is often used as a basis for calculating overtime payment or bonuses.

Vacation Pay refers to a percentage of an employee's regular wages that an employer sets aside for vacation time as regulated by employment standards legislation. This compensation is typically accrued and paid out when the employee takes their entitled vacation time. It ensures that workers can enjoy their holiday periods without financial strain.

Voluntary Benefits are optional, employee-funded benefits that are offered through the employer but paid for by the employees, usually through payroll deduction. They can range from life and disability insurance to pet insurance and more. Such benefits supplement core employee benefits, offering a more comprehensive coverage or protection.

Wage to salary refers to the conversion of an hourly wage into a yearly salary or vice versa. It is a common practice in HR calculations to provide comparative analysis between different pay structures. This concept is significant when determining an employee's annual compensation based on hourly wage or in converting a salary into hourly pay for part-time employees.

Work-Life Balance refers to the equilibrium between professional responsibilities and personal life activities or leisure time. It's about striking a balance between work demands, such as work schedules, workload, and pace, and personal life including leisure activities, family time, and personal interests. Maintaining a good work-life balance is critical to reduce stress, enhance job satisfaction, and improve overall wellbeing.

Workers' Compensation is a type of insurance that provides wage replacement and medical benefits to employees injured in the course of employment. It is a mandatory type of insurance carried by many businesses and is considered a trade-off where employees receive guaranteed coverage without having to litigate their employer for compensation. This system allows for protection of both employers and employees in case of workplace accidents.