Definition
Programs that help nonprofit organizations, small businesses and other groups conduct a salary study which may include comparisons with local and regional benchmarks; and/or develop a compensation plan which defines salary ranges (minimum and maximum amounts) for positions within the organization and benefits that are available to employees including medical insurance, dental insurance, vision insurance, employee assistance services, life insurance, disability insurance and retirement benefits. The program may also help the organization develop policies and procedures for determining the salary of entry-level and experienced new employees and for managing annual raises and/or bonuses for staff; and, if a nonprofit organization, understand and comply with the IRS regulations that relate to "excessive benefit transactions" in order to avoid intermediate sanctions. Nonprofits may not allow insiders to set pay scales, benefits and perks at levels that do not realistically reflect the contribution the recipients' make to the accomplishment of the exempt purpose.
URL Name
TP-2100-1500-150
Third Level Code
TP-2100
Taxonomy Code
TP-2100.1500-150
Parent Code
TP-2100.1500
Family Code
T
Second Level Code
TP
Fifth Level Code
TP-2100-1500-150
Fourth Level Code
TP-2100-1500
Use References
Compensation Studies, Excessive Benefits Transactions Avoidance, Intermediate Sanctions Avoidance, Salary Studies
Publication Status
Draft