Monday, March 11, 2013

Tax Breaks That Can Help You Hire and Keep Employees

Large corporations usually offer a slew of financial incentives to attract and retain top talent. Small companies may not be able to offer comparable incentives but can provide some valuable fringe benefits to stay competitive with the big boys. Besides health coverage and retirement plans, here are some other prized, yet relatively inexpensive, benefits you can offer to employees. The best part: You get to deduct your costs while employees receive the benefits on a tax-free or tax-deferred basis.

Cell Phones

Company-provided cell phones are not taxable to employees as long as you give them for “non-compensatory” reasons, meaning the phones cannot be rewards or inducements for employment. However, they are tax free if, for example:
  • You need to contact the employee at all times for work-related emergencies
  • You require that the employee be available to speak with clients at times when the employee is away from the office
  • Employees need to speak with clients located in other time zones at times outside of the employee’s normal work day
To read the full article click here 

Source: Barbara Weltman

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