Employee Incentives

TMorche

In the past we paid employees a minimal amount of cash each year as non-taxed bonus. After discussing this with our Accountant we have been informed that this is not an acceptable practice.

This leads me to the question at hand:

Have you found a way to give employees cash incentives that is acceptable? If not, how do you reward employees for great production, or performance besides raises? We are looking for ideas - I'd love to hear what types of programs you offer.

Thanks!

mgrinnc

We often have special promotions, well contests really, going on within our local offices and the incentives are gift certificates. Sometimes they are for specific restaurants or a general mall gift certificate, but occasionally it's an American Express that you can use anywhere. Hence, cash without being taxed.

Don D

We are big into giving Wal-Mart and Restaurant gift cards to employees for cost reduction ideas. Annually, however, we have to send a report to corporate of each $25 card given out and corporate treats those, according to law, as income. We also give employees logo golf shirts, water coolers and other small gift items and those are not taxed in any manner. Those, we are advised, fall under the deminimus rule in the IRS regs.