W2 Issues/Concerns

  • This field is for validation purposes and should be left unchanged.


Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Total Compensation Statements Help Boost Employee Morale

Even if you haven’t upped the salary for your employees recently, chances are you have increased their compensation package. Further, there’s an even greater chance that you didn’t even think to tell your workers, missing a fantastic opportunity to show your workers how much you appreciate them and help boost employee morale at the same time.

Now, the compensation increase that you handed over likely took one of the following forms:

  • Increasing your contribution to employees’ health insurance
  • Giving employees additional paid time off
  • Boosting the amount you contributed to employees’ retirement funds

However, you probably didn’t think to notify employees of these seemingly minor – but certainly important – boosts.

Enter the total compensation statement, which allows you to show employees that their pay is increasing, even if they aren’t seeing a salary bump. However, in order to demonstrate benefit, you need to follow three key steps:

  • Break up the benefits: To truly showcase your investment, divide each element of the employee’s compensation into its own line item, rather than lumping them together (i.e., separating medical insurance from dental and vision, rather than listing them all under “health benefits”). For example, your list should include all of the following (where applicable):
  • Base salary/hourly rate
  • Overtime paid
  • Bonus compensation paid
  • Paid holidays — and the wage value of each if the employee is hourly
  • Sick days issued (not taken)
  • Vacation days issued (not taken)
  • Other forms of paid leave — personal, medical, bereavement, military, jury duty, etc.
  • Medical insurance — include the amount paid by the employer
  • Dental insurance
  • Vision insurance
  • Disability insurance
  • Life insurance
  • Retirement contributions
  • Tuition assistance
  • Training courses paid for by the employer
  • Non-cash compensation — gifts, travel, meals, tickets, etc.
  • Employee assistance programs offered (list the cost of each program separately), and
  • Relocation expenses
  • Go year-to-year: To further showcase benefit, sometimes you have to show employees where they came from! To do this, include in the statement a comparison of what you paid for each element of a person’s compensation this year versus what you paid for it last year.
  • Make a statement: To summarize your investment, include a single line that tallies up all of the expenses and label it as “total compensation.”

HR Morning News recommends that the total compensation statement be issued separately from an employee’s regular pay stub and that it should also be accompanied by a letter describing what it is, why you’re providing it and how employees should use it.

[pro_ad_display_adzone id="4020"]

Featured BLOGS

  • Should you opt for a PEO or a payroll company?

    Joe Frazier versus Muhammad Ali, Boston Red Sox versus New York Yankees. Green Bay Packers versus Chicago Bears. PEO versus payroll companies. Well, turns out one of these things are not like the other and not just because they don’t involve sports teams and packed stadiums, but rather because there really isn’t any rivalry, per se, between a PEO company and a payroll company. You see, while they both help you offload some of your HR responsibilities, they function in entirely different ways. A payroll company really dials in and takes over just one facet of the human resources world.

  • HR how-to: Do you have a gift giving policy?

    While you’re still nursing your turkey hangover, we’ve been busy thinking about the holiday season ahead and while it’s sure to be full of festive cheer, it’s also a season ripe for some rather large HR pitfalls. Take the good ol’ holiday gift. Whether it’s a secret Santa, a white elephant, a Yankee Swap, or any other name for a holiday exchange, it is one holiday tradition that definitely could be helped by the addition of a gift-giving policy. What are the rules? (of the gift giving, not the game, obviously!) Make it voluntary: The holiday period can be tough


FSA | Commuter New Employee Abel Portal Time Clock