Every time tax season comes, everyone is reminded of how much money goes to government facilities. But for the accounting department who is responsible for computing the salary, they will most likely wish the company can think of other ways to reward everyone with tax free incentives for employees. Although some have made arrangements such as tax-free health plans, life insurance, and tax-deferred retirement policies, giving employees a token of appreciation that are not taxable are excellent motivators.
Corporate Health Benefits
Larger firms usually apply for corporate packages that promote a healthy lifestyle to the employees. Awarding personnel with certificates for unlimited use of the gym or fitness centre is one of the practical forms of tax-free incentives for employers. Not everyone in the office has the means to pay for fitness classes. But with special corporate arrangements, staff can avail a particular discount on the membership. Gift certificates that are meant to be handed out as tax-free incentives for employees can be customised, such as the kind of reward and which retailer they can redeem the gift.
Free Meals And Accommodations
Out-of-town or overseas corporate events will need meals and housing for employees who will be attending the event. Aside from free plane tickets, providing gift cards that can be redeemed for their meals and hotels are considered tax free incentives for employees. Firms can pay in advance for special arrangements with another merchant if they frequently avail of their services. Perhaps these establishments have available gift cards or purchases from online shops that sell universal e-gift cards. These types of employee benefits don’t qualify as taxable, and no additional charges upon redemption.
Maintaining regular communication among staff, especially those who work in the field, is imperative for every business. Another form of tax-free incentives for employees is by reimbursing their phone bills. When their job necessitates buying a mobile phone or applying for an internet connection, a gift certificate or gift card with a value similar to the cost of a mobile phone is a terrific option instead of purchasing the actual unit. Besides, the employee is the one who’ll be using it; they might as well choose the model that meets their needs.
Frequent Flyer Points
Aside from providing free meals and hotel accommodation, free plane trips through redemptions of frequent flyer miles are common tax free incentives for employees. The government or the IRS allow such arrangements to be tax-exempt benefits.
Whether the staff take their car or public transportation, reimbursing their transportation expenses is helpful and rewarding, especially if the headquarters is far from where they live. Reimbursements can be in the form of a gift card or gift certificate that can be redeemed at petrol stations, a month-worth of train pass, or a card with a sufficient amount used in any public transportation. These are some of the tax-free incentives for employees that job seekers usually look forward to when they apply for a job with an office that is considerably far from their residential address.
Generally, firms are looking for ways to improve their benefits packages while not blowing their corporate budget. Adding some of these tax-free incentives for employees to their existing package is a suitable option. Both the employer and the staff can take advantage of these tax-free perks.