Use Our eBook to Create a Great Rewards and Recognition Program

Is running an employee incentive program worth the time and cost invested? According to the HRM report, US companies spend $1 billion annually on incentive programs(opens in a new tab) — and for good reason.

Employee incentive programs — such as bonuses, prizes, and recurring rewards — are a great way to retain employees and motivate your team to push themselves further. In fact, 58% of people said employers could improve employee engagement by offering more recognition(opens in a new tab).

However, employee incentives can also be fraught with confusing tax requirements and various rules set forth by the IRS. In order to offer employee incentives that works for your company, we’ve made an eBook that will cover:

An Incentive Plan Overview

• Employee Retention and Motivation - This guide will give you a quick overview of studies that have shown the effectiveness of rewards and recognition.

• The Financial Impact of Employee Incentive Programs - For example, did you know that the cost of recognizing and motivating employees is usually a tax deductible expense for businesses?

Employee Incentive Types

• Bonuses - Learn about how bonuses are classified as supplemental wages and how they’re subject to supplemental wage withholding rules.

• Prizes and Awards - From non-cash recognition awards to awards for performance, learn about fringe benefits and which awards must be included in an employee’s wages.

• Prizes From a Third Party - Learn how distributors or manufacturers can motivate their dealers’ salespeople with prize points and other programs to sell products.

• Non-Cash Prizes - For retailers who pay salespeople solely on a commission basis, learn how certain non-cash prizes can receive special treatment when it comes to federal income taxes.

Rewards Excludable from Taxable Income

From achievement awards to other prizes, the IRS has specific rules for what defines de minimis benefits (small benefits with so little value that accounting for them would be unreasonable or impractical).

For example, did you know that length-of-service awards have different requirements than employee achievement awards, with their very own sets of qualifications for income tax exemption? This guide will walk you through each qualifying factor for awards, including:

• Employee achievement awards

• Safety achievement awards

• Length-of-service achievement awards

To boost employee retention and keep a high level of employee motivation, having an incentive plan in place will lead to a higher level of employee success and business success overall. You can learn more about how to navigate rewards and recognition by downloading the free eBook here.