Courses in


Employee Compensation

5 Credit, Single Accredited Module, Level 7 - Semester II

Why Study?: 

To develop students' knowledge and understanding of the design and implementation of employee compensation and incentive schemes.

Learning Outcomes: 

On successful completion of this module the learner will/should be able to:

evince a knowledge and understanding of the conceptual frameworks underpinning the design of employee compensation and incentive schemes, including motivation theory and agency theory;
apply a practical knowledge of legal, accounting and taxation aspects to the operation of compensation and pension schemes;
participate with confidence, as members of a management team, in the design and implementation of employee compensation and pension schemes and practices in a variety of organisational contexts;
advise employees in matters relating to compensation, pensions and personal financial planning.


Conceptual Framework
Nature, purposes and scope of employee compensation; impact on employee recruitment, motivation and behavior; monetary compensation schemes; agency theory and incentives; forms of incentive and incentive system design; bonus culture; ethical issues including fairness; compensation in the public and voluntary sectors; negotiating compensation; human resource accounting.

Legal and Accounting Aspects
Employee legal entitlements to compensation and responsibilities of employers in Ireland and internationally; calculating pay including overtime, holiday pay and maternity pay; labour cost accounting; accounting for share options.

Tax Aspects
The Irish tax system; liability to personal tax; residency status; distinction between employee and self-employed; contract of services v contract for services; calculation of tax payable - allowable deductions, tax credits, tax bands; emergency tax basis; employer obligations and returns; forms P45; P60; P35; PRSI rates and class; exempt amounts; liability to USC; treatment of benefits-in-kind; EII relief; tax considerations in relation to share-based remuneration.

Termination Compensation
Elements of a severance package; employee entitlements; taxation treatment of termination payments; standard capital superannuation benefit (SCSB); available reliefs including relief for foreign service and top slicing relief; employer rebates.

Pension schemes - defined benefit and defined contribution; state pension; contributory, transition pension, non-contributory pension, private pensions; personal pension schemes; tax relief on personal pension contributions; additional voluntary contributions; occupational pension schemes; PRSA’s; regulation of pensions; ARFs, AMRFs and annuity contracts; employer obligations.

Financial Advice for Employees
Personal financial plan; organizational savings schemes; personal investments; financial lifecycle.

Other Essential Information: 

Duration:                         5hrs/week

Time:                              2-5pm/Thursdays – Semester II

Dates:                           Thursday 17th January, 7th, 28th  February,  21st March &  11th April 



Discipline: Business

Location: Mayo

NFQ Level: 7

Category: Single Subject


Tel:  094 9043253

Programme Duration: 15 Weeks