Abstract
This short paper will examine the payroll size of Exxon Mobil Corporation and present figures for groups expenditure in lieu of its payroll. Furthermore, it will also discuss certain issues which have been made headlines as the company plans to save up from changes in its payroll.
Main Body
Exxon Mobile Corporation based in Irving, Texas was founded in 1870 and it went through substantial structural changes to bring itself to the current setup. It is one of the largest companies engaged in the exploration, production, transportation, and sale of crude oil and natural gas. The company operates in the United States, Canada, Europe, Africa, Asia-Pacific, the Middle East, Russia, Central Asia, and South America. The company employs a workforce across its global network and it adopts a recruitment strategy that seeks a diverse workforce.
Exxon Mobil Corporation adopts a long-term integral policy to hire a blend of employees to ensure the success of its projects. Its human resource policy aims to employ a diverse workforce with a range of cultural backgrounds, knowledge, and skills across its global network of operations. The company promotes a nationalized hiring policy that promotes the hiring of national employees for local projects in each of its operations in different countries and invests highly in empowering the labor force by providing the necessary training and education. By the end of 2007 the company showed the following figures related to its payroll structure and expenditure related to it:
Table 1: Exxon Mobil Corporation Payroll (Figures from Exxon Mobil Corporation).
The new payroll tax changes effective from 1 Jan 2008 include salient features such as the following (William & Olds, 2008):
- The maximum amount of salary earnings subject to Social Security tax increased to US$102,000.
- The maximum amount of US$6,324 as Social Security tax can be paid in 2008.
- The maximum amount that an employee can receive in advanced earned income credit payments is $1,750 subject that gross come must not be less than US$33,995.
- The fringe benefits include standard mileage rate for computing the deductible costs of operating a car (including vans, pickups, or panel trucks) for business use is 50.5 cents per mile. However, a different method will be used if the automobile is provided for personal use first and its fair value exceeds US$15,000 (US$15,900 for a van or truck). Furthermore, the FAVR method may be used if the cost of the automobile may not exceed 95% of the automobile’s retail price, plus state and local taxes, nor may the cost exceed $27,500. Additionally parking fees of US$220 per month and US$115 for transit and highway commute.
- For the adoption of a child and educational assistance, US$11,650 and US$5,250 are deductibles respectively from gross income.
- The maximum annual contribution of US$2,900 for self-only coverage and US$5,800 for family coverage.
- The maximum amount to defer to an IRC§401(k) cash or deferred compensation plan is US$15,500. The maximum amount that may be deferred to a savings incentive match plan for employees is US$10,500. The limitation on total annual contributions to defined contribution plans is US$46,000. The annual limit for defined benefit plans is increased to US$185,000.
- Employees working in foreign countries may exclude foreign income of US$87,600 from gross income and also housing costs up to US$12,264 or more if housing costs are higher in a foreign country than in the US.
- The minimum wage increased to US$6.55 per hour effective 2008.
References
Exxon Mobil. (2008). About us: our diverse work force. Web.
United States Securities Exchange Commission (2007). Exxon Mobil Corporation Form 10-K. New Jersey. Web.
William & Olds. (2008). Payroll tax changes. Web.