You are the HR director for “DressingNot4Profit” a clothing consignment shop that has 18 full time employees with salaries ranging from $20,000 to $75,000 and 12 part time employees averaging under 20 hours per week and under $5000 per year. The nonprofit shop is fully owned by another non-profit called “WeAreNonProfit.” They have asked you to research retirement plan options just for your shop, that would allow employees to contribute toward their own retirement and may be willing to contribute to employees that do so. They would like to keep costs under 3% of payroll and create a benefit that keeps employees from leaving. What would you recommend and why?
payroll cost will include all other or extra benefits like bonus,medical, provident fund etc.
as this company is non profit and they want to keep their cost of 3% of payroll so
company should adopt policy of creating fund out of which 3% will be contributed by employee and same will be contributed by employer every month.
if salary of any employee is 10,000$
than 3% i.e. 300$ by employee
and 3% i.e. 300 by company
his net monthly salary is 9700$ and saving would be 600$ and cost to the company is equal to 3%.
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