How do I handle "no-salary employees"?

Many startups have employees who do not receive cash compensation for the first few years. Instead they are motivated by the prospect of their stock (or stock options) becoming of considerable valuable when the company grows and is then acquired. Here is how to accommodate this situation in Offtoa:

Using assumptions/costs/personnel/employees in the menu, set the employee's first year salary to be what they would “normally” earn if they were not working for free (e.g., $50,000). Then click on the Advanced button and set that employee's “paid percentage” for the first year to 0%. Voila! Offtoa will record their cash salary for the first year as $0 and for the second year as $50,000 (plus perhaps their first year raise).

Note that Offtoa will automatically reward that employee during the first year with stock options equivalent to the lost wages.

Related Questions:

How many options will my employees be granted?

How do I handle a commission-only employee?


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