What Is Employee Engagement? Employee engagement is a human resources (HR) concept that describes the level of enthusiasm and dedication a worker feels toward their job. Engaged employees care about their work and about the performance of the company, and feel that their efforts make a difference. An engaged employee is in it for more
What Is an Employee Savings Plan (ESP)? An employee savings plan (ESP) is a plan provided by an employer that allows employees to set aside a portion of their pre-tax wages for retirement savings or other long-term goals, such as paying for college tuition or purchasing a home. Many employers match their employees’ contributions up to a certain dollar
What Is an Employee Share Ownership Trust (ESOT)? An employee share ownership trust (ESOT) is a stock program that facilitates the acquisition and distribution of a company’s shares to its employees. ESOTs are trust accounts through which a company can sell its shares to employees. Key Takeaways An employee share ownership trust (ESOT) is a
What Is an Employer-Sponsored Plan? An employer-sponsored plan is a type of benefit plan offered to employees at no or relatively low cost. These plans, such as a 401(k) or HSA, cover an array of services including retirement savings and healthcare. Employees who enroll in such programs capitalize on the benefit of receiving discounted services. On the
What Is an Employer Identification Number (EIN)? The term employer identification number (EIN) refers to a unique identifier that is assigned to a business entity so that it can easily be identified by the Internal Revenue Service (IRS). EINs are commonly used by employers for the purpose of reporting taxes. The number is made up
What Is the Employment-to-Population Ratio? The employment-to-population ratio, also known as the “employment-population ratio,” is a macroeconomic statistic that measures the civilian labor force currently employed against the total working-age population of a region, municipality, or country. It is viewed as a broad metric of labor unemployment. It is often calculated by dividing the number
What Is Electronic Bill Payment and Presentment? Electronic bill payment and presentment (EBPP) is a process that companies use to collect payments electronically through systems like the Internet, direct-dial access, and Automated Teller Machines (ATMs). It has become a core component of online banking at many financial institutions today. Other industries—including insurance providers, telecommunications companies
What Is an Electronic Check? An electronic check, or e-check, is a form of payment made via the Internet, or another data network, designed to perform the same function as a conventional paper check. Since the check is in an electronic format, it can be processed in fewer steps. Additionally, it has more security features
What Is the Electronic Fund Transfer Act (EFTA)? The Electronic Fund Transfer Act (EFTA) is a federal law that protects consumers when they transfer funds electronically, including through the use of debit cards, automated teller machines (ATMs), and automatic withdrawals from a bank account. Among other protections, the EFTA provides a way to correct transaction errors and
What Is Electronic Money? Electronic money refers to money that exists in banking computer systems that may be used to facilitate electronic transactions. Although its value is backed by fiat currency and may, therefore, be exchanged into a physical, tangible form, electronic money is primarily used for electronic transactions due to the sheer convenience of
