Texas Compensation Plan

Written by admin
Bookmark and Share

One Texas compensation plan helping many employees is the shared work unemployment plan. Many employers are choosing this option instead of laying off employees. It works by allowing the employees in a specific workgroup to keep their job with fewer hours worked. The Texas compensation plan picks up the difference in the amount of time worked by compensating a percentage of the regular benefits.

This type of Texas compensation plan does affect the employer's tax rates. Another type of compensation plan is called deferred compensation. This is a plan that allows participants to make pre-tax contributions from their paycheck to establish a retirement income account. The employer does not contribute to this account. There is an annual limit to the amount allowed.

Another Texas Compensation Plan

The only way money can be withdrawn from a deferred compensation plan is for a limited number and type of emergencies. This includes such things as a sudden illness or accident with loss of income or some catastrophic event. It does not include expenses such as college tuition, weddings, or well-deserved vacations. It must be a qualifying emergency to withdraw from this fund. There is also a penalty for withdrawal.

The Internet is a great place to find out more about a compensation plan that might be in your best interest. A few clicks of the mouse will direct you to the site with the answers you need for yourself or your employees. . It pays to prepare for the future with a compensation plan to handle those employment hurdles or interruptions to our otherwise perfect world.

Bookmark and Share