This portion of the book will provide a framework towards understanding how compensation is recorded within Indiana University.

Compensation is defined as the payments made to IU faculty and staff. Examples of compensation at IU include an employee’s salary along with overtime, bonus payments, time off, benefits, and commission when applicable. Benefits are payments made on behalf of IU faculty and staff to provide additional non-cash compensation to employees. Benefits range from health insurance, dental insurance, retirement plans, and employee assistance programs. Benefit expense is based on an approved pooled rate and is not charged based on direct expense. Compensation is the largest expense at Indiana University.  By properly recording compensation, IU can provide a more comprehensive view of its financial activities. This helps in making informed decisions, budgeting effectively, and maintaining transparency in financial reporting.