Do you appreciate employees that stuck by your side through thick and thin? It’s time to celebrate their dedication while maximizing your tax benefits!
Imagine the joy on your employees’ faces as they receive a heartfelt gift or award for their loyalty. But did you know there’s a strategic way to handle this in the tax code?
Here’s the scoop:
➡️ Five-Year Rule: Give your long-term employees a special award every five years. It’s a powerful way to honor their commitment.
➡️ Qualifying Awards: The award can’t be cash – it must be something tangible that carries sentimental value, like a watch or a stylish gadget.
➡️ Special Moments: Make the award-giving a memorable event. It’s not about lavish parties but the thought behind the gesture.
➡️ Deduction Limits: Maximize your tax benefits by deducting up to $1,600 per employee annually for qualifying awards.
➡️ Genuine Appreciation: Remember, this isn’t about replacing their pay. It’s about showing genuine gratitude for their dedication.
To summarize, saying “thank you” to employees stuck around for a while is a great idea. The tax rules have some guidelines for giving these special awards, and they’re meant to ensure everything is fair.
At Palma Financial Services, we specialize in turning tax complexities into strategic advantages. Ready to explore the win-win of employee recognition and tax benefits?
Click here to book your appointment, reply to this email, or call us at (850) 829-3733.