2008 Best Practices Study

Appendix

Terms Related to Expenses

COMPENSATION EXPENSES (as reported for most recently completed fiscal year-end and stated as a percentage of net revenues)

Payroll: The following payroll breakdown is for the entire agency including agency owners:

17.		Employees—Salaries, commissions, bonuses, management fees, and discretionary owner compensation
18.		"Non-Employee" Producers—Commissions, bonuses for agency's producers compensated on 1099
19.		Temporary Help—Expenses for outside temporary staffing, temp-to-perm staffing expenses, etc.
20.		Total Payroll—The sum of items 17 - 19

Benefits:

21.		Payroll Taxes—All payroll taxes (SS, FICA, FUTA, etc.)
22.		Retirement—Expenses related to a 401(k), ESOP/ESOT, miscellaneous retirement benefits
23.		Insurance—Health ins, medical reimbursements, life ins (except "key man" life), disability insurance
24.		Other—Wellness programs, health club memberships, gifts, etc.
25.		Total Benefits—The sum of items 21-24
26.		Total Compensation—The sum of items 20 & 25