Key terms

Base compensation/salary*: The amount an employee earns — before calculating bonuses, retirement and benefits — based on the W-2 tax form. On the Form 990, the base compensation column in Schedule J Part II is not necessarily the same as the salary on an employee’s contract.

Salary: Very similar to base compensation, but there may be some pre-tax deductions that would create inconsistencies between a salary and the base compensation. 

Total compensation: The amount an employee earns including base compensation, bonuses, retirement funds and benefits.

Bonus and incentive compensation: Incentive compensation is the amount an employee earns as an incentive to stay with the college. Bonuses are given based on merit for employees who have made significant contributions to the college, or as part of a position change that required additional responsibilities. The college explains specific bonus and incentive compensation in Schedule J Part III of the Form 990.

Other reportable compensation: The amount an employee receives for retirement support, additional duties and tuition assistance.

Nontaxable benefits: The amount an employer, in this case the college, contributes to an employee’s retirement plan.

Retention bonus: An incentive for employees to stay with their employer at will.