{Uncle Sam will award you by means of a tax break.|{Need|Want{} a tax break|tax relief}? Try Awarding your Employees}

There are incredibly few tax loopholes these days that allow an employer a deduction which is tax free to employees. Health insurance is one such tax free employer provided benefit. But there is one more which is unnoticed by employers. Achievement awards.
If structured accurately, employee achievement awards can provide a tax deduction for the employer while remaining tax free to the employee. There are certain hurdles that have to be overcome in order for the achievement award to be tax free. It all starts with the setting up of an Achievement Awards Program. Such a program may be a qualified program or an unqualified program.
Qualified programs must suit the following requirements:
1. The plan should be in writing.
2. Award cannot be compensated at the identical time as annual salary reviews. It must be succeeding to an "achievement event" occurring.
3. It cannot be compensated in cash or cash equivalents. It must be property, such as personalized awards, trophies, golf clubs, televisions, vacations etc.
4. Award cannot exceed $1,600.
5. Plan cannot be discriminatory and favor highly compensated individuals.
6. The typical cost of all employee recognition awards granted throughout the year cannot go above $400. Awards of insignificant value are not integrated in the average. Nominal may be $50 or less.
7. Any gift with a worth in excess of $1,600 have to be included in the employee's W-2 compensation.
8. The award must be part of a "significant presentation", such as an awards ceremony. The ceremony need not be lavish.
Nonqualified programs must satisfy the subsequent requirements:

Recognition could be given for length of service, safety or some other achievement. The safety gift does not qualify if the employer grants safety awards to more than 10% of the eligible employees throughout the year.
If you meet these requirements the reward is excepted from income tax and social security tax.
Of course you should always consult your Accountant, but this is an additional qualified way to shell out a slight less to uncle Sam.

Article Source: http://www.onlinearticlessite.com

Coach Eddie Owner of www.awardmastersinc.com Eddie Hill Award Masters Inc. 1-800-800-4808 Employee Recognition Awards

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