Human Resource Management Fundamentals

Minimum Wage

• Definition: The minimum amount of money that an employer is required to pay an employee per hour of work
• Purpose: To protect workers from exploitation and ensure a fair standard of living
• Types:
  • Federal minimum wage: set by the federal government
  • State minimum wage: set by individual states
  • Local minimum wage: set by cities or counties
• Exemptions: Certain employees may be exempt from minimum wage laws, such as:
  • Tipped employees
  • Student workers
  • Interns

Taxation

• Definition: The process of deducting money from an employee's paycheck to pay taxes
• Types:
  • Federal income tax: withheld by the employer and paid to the federal government
  • State income tax: withheld by the employer and paid to the state government
  • Social Security tax: withheld by the employer and paid to the Social Security Administration
  • Medicare tax: withheld by the employer and paid to the Medicare program
• Tax brackets: The range of income levels that determine the tax rate
• Tax deductions: Allowable deductions from an employee's taxable income, such as:
  • Charitable contributions
  • Medical expenses
  • Mortgage interest

Benefits

• Definition: Non-wage compensation provided to employees in addition to their salary
• Types:
  • Health insurance: medical coverage provided by the employer
  • Retirement plans: employer-sponsored plans for saving for retirement
  • Paid time off: vacation, sick leave, and holiday pay
  • Life insurance: coverage provided by the employer in the event of an employee's death
• Benefits administration: The process of managing and distributing benefits to employees
• Benefits compliance: Ensuring that benefits are administered in accordance with relevant laws and regulations