Please note that this information is just a highlight of the guidelines from the tax code regarding employee awards.
* Awards for outstanding sales or production or for sustained individual performance
* Awards in contest of all types
* Travel awards
A rewards program should be designed so that it does not cost the company or the award recipients unexpected taxes. Perhaps the best strategy is to give nonmonetary awards. After all, what employees want the most is to be valued for a job well done by those they hold in high esteem.
Copyright © 1999 Bob Nelson, Nelson Motivation Inc.