Employee benefits and directors’ remuneration
Employee benefits and directors’ remuneration
To be a leader in your market, you need to first attract the best talent – and then keep hold of them. So, it’s essential to think about how you can encourage people at all levels of a business to stay loyal. From entry-level workers to C-suite executives, there is much to consider. Part of this is what you can offer in the form of employee benefits and directors’ remuneration.
At Kreston Global, our consultants can support you in creating a sustainable employee benefits strategy. We can also guide you in developing attractive directors’ remuneration packages that will appeal to the industry leaders who can take your business forward. If this is something about which you want to know more, get in touch with our experts and benefit from our exceptional level of service.
Focusing on the unique needs of your business
Each business is different, something which our experts recognise and appreciate. This enables us to provide you with a bespoke, in-depth service that reflects exactly what you want to achieve. But first, it’s important to know what it is that you want to offer to the people who matter most to your business. Armed with that knowledge, our specialist consultants can deliver real value.
What do we mean by employee benefits?
In offering benefits for employees, you are making a conscious decision to provide your workers with various financial and lifestyle incentives. Beyond a base salary, you can opt to motivate or reward staff members in whatever way you deem fit. Of course, it must be considered carefully. Just because a competitor makes certain employee benefits choices, it doesn’t mean that you should too.
Our employee benefits consultants can help you to navigate the various considerations to develop a package that is relevant and sustainable. We look at areas such as financial bonuses, pension schemes, healthcare cover and even office freebies (e.g. fruit or beverages) to make sure that any employee benefit suggestions are workable for your business.
How do you define directors’ remuneration?
The remuneration of executive directors is often a different consideration to employee benefits. Unlike contracted staff on payroll, directors aren’t typically under this sort of arrangement but there’s still the need to compensate them for their time and expertise. While they might take a salary, this is just one part of a director’s remuneration package to consider.
With this in mind, your Kreston Global consultant will help you to define directors’ remuneration in the context of your business. Fees, use of property and other benefits are all considered here.
What do you need to consider?
The first step is deciding to develop your employee benefits and directors’ remuneration – but this is more than simply settling on your preferred employee benefits or working out how to calculate directors’ remuneration. There can often be rules and regulations to which your business will need to adhere. Our consultants have an in-depth knowledge of these considerations to help you to navigate them.
Employee benefit and director remuneration accounting
As you’ll no doubt guess, there will be specific accounting treatment applied to the provision of employee benefits and director remuneration.
IAS 19 is the standard used for the accounting treatment of employee benefits – except for any benefits involving share issues. In many cases, such benefits are in exchange for the continued employment of that individual but it can also cover longer-term benefits such as pension plans.
In terms of company director remuneration packages, some aspects of a package could be tax-deductible. All payments to a director must be accounted for using a specific journal entry. The director’s remuneration account is debited, while the cash leaving the business is credited.
Director remuneration regulations
Under various bits of legislation and accounting rules, there are specific director remuneration regulations of which to be aware. Initially defined by the Companies Act 2006, additional regulations have come into force – including the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019. Our consultants will ensure that you are on top of these.
Why choose Kreston Global?
Choosing Kreston Global means that you can be sure that you’re getting the highest levels of service. You’ll benefit from our team’s extensive knowledge and expertise if you outsource employee benefits management and directors’ remuneration to us, and we’ll ensure that your business is ready to face the challenges of an ever-evolving marketplace with confidence.
Get in touch to find out more about our services today or become a member and gain access to our global network of more than 23,500 accounting specialists for even more benefits.