Question

Explain the term "compensation of employees " and its components. Giving reasons, state whether the following are treated as compensation of employees-------
(a) Gifts by employees.
(b) Bonus
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Please answer this question this is very urgent please.​

Answer 1

Answer:

Compensation reserve is a type of reserve in which employer save a part of profit for uncertainity of employees this saving is a compensation . that is a way in which employer helps the employees by compensation.

Explanation:

so gifts by employees is not a compensation but bonus is a compensation it helps the employees indirect way to cover their uncertainity.

Answer 2

Option B) Bonus

Compensation of employees " and its components. Giving reasons, state whether the following are treated as compensation of employees Bonus.

• Employee benefits or financial compensation are things provided to workers in exchange for their labour. There are three main ways to get paid.
• Employees provide labour, and in return for that labour or service, they expect compensation and other perks. Such compensation consists of money and other perks. The money paid for the work done and the benefits/services offered to the employees can be referred to as "compensation."
• Medical insurance, life insurance, disability insurance, and retirement plans are the four main categories of employee benefits that many firms provide. Below, we've included a simple definition for each of these categories of employee perks.
• The cash an employee receives in exchange for the product he or she produces for the company is referred to as compensation for employees. It contains the base salary, the dearness allowance—the money needed for subsistence—and any commission.
• The compensation given to the employee in addition to the base salary is known as a bonus. A bonus is a form of financial reward that goes above and above the employee's base pay. Both entry-level employees and senior-level executives are eligible for bonuses.

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