Lower payrolls, higher pay

Article Abstract:

Several options are available to companies that wish to save on payroll costs without reducing staff or cutting the pay of their employees. These include profit-related pay (PRP) schemes and share acquisition programs such as profit sharing plans, savings-related share option schemes and employee stock ownership programs. Each of these options are based on tax laws that allow companies to reduce their corporation tax and National Insurance payments if they link pay either to profits or to share acquisition by employees. PRP schemes are the most widely used of these payroll reduction options, with an estimated 700,000 employees participating in PRP programs as of 1992. Other payroll reduction options that may be considered, should PRPs and share acquisition schemes be deemed too risky, are the adoption of cafeteria style benefits programs and the provision of non-cash vouchers in place of bonuses.

Methods, Management, Usage, Taxation, Compensation management, Employee stock options, Employee stock ownership plans, Cafeteria benefit plans, Profit sharing, Payrolls

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Factoring: big should be beautiful

Article Abstract:

The recent collapse of the London and Provincial Factors Ltd (L&P) has underscored the need for UK companies and their advisers to exercise caution when considering factoring. Although L&P clients had no sufficient reason to expect the insolvency of the factoring company, the fact that it was not owned by any major bank should have been cause enough for exercising extra care. L&P's collapse has given its competitors, all members ofthe Assn of British Factors and Discounters (ABFD), an opportunity to capitalize on the fact that they are all owned by 'major' banks. The ABFD was quick to point out that none of its members has ever been insolvent and is everlikely to since they are supervised by the Bank of England. It also pointed outthat, unlike L&P, ABFD members do not use their clients' invoices as security for their bank loans.

Short-term business credit, Commercial finance companies, Factoring (Finance)

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Doing a deal with the auditors

Article Abstract:

The proposals of the UK Company Law Review Steering Group on auditors' liability are discussed, with focus on the increased expectations of auditors which are balanced by increased safeguards.

Laws, regulations and rules, Corporation law, Accountants, Malpractice, Auditors

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