Bill Johanesen -> RE: Covid 19 and those infected (9/4/2020 12:52:10 PM)
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ORIGINAL: unome quote:
ORIGINAL: Bill Johanesen quote:
ORIGINAL: unome quote:
ORIGINAL: Bill Johanesen quote:
ORIGINAL: McMurfy The ever popular Total Compensation Bait and Switch Along with an Outlier Example. Try to keep up. Yes, total compensation, benefits, perks or similar terms do not necessarily equate to cash in pocket. A place could have a treadmill, and the 'total compensation' will include what a gym membership costs. Holidays, leave, etc are all converted to equivalent pay. Total compensation is the only way employers look at labor costs. And the cost of a treadmill would be split over all employee hours and be essentially nothing for a firm with a decent number of employees. One $500 piece of equipment for every 50 full-time employees would come out to a half a cent and hour of extra compensation for that year. Less if they can use that treadmill for multiple years. I don't think the gov't calculates it like that. They simply reason that because a treadmill exists, we are adding the cost of a gym membership (based on some calculation) to your total compensation calculation. At least that is how it is done with my total compensation calculation. I am not sure how the government calculates expenses for their employees, but you cannot throw a treadmill into an unused office and write it off as a $80 a month 'gym membership'. I wish you could. At the end of the day, you just cannot add any expenses if they are not actually there. Not legally, at least. You could count the square footage of the employee's gym in a calculation of total compensation, for example. But this would just mean taking some of the building cost from one bucket and then dumping it into the total compensation bucket. I embellished to highlight the example. But whether the facility is 500 or 5000 SF, they consider that box checked then add in the equivalent of a fitness membership. A facility could be way nicer, but they don't boost the compensation to, for example, the equivalent of membership to a luxury fitness center.
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