How to minimize the pain of taxes
The issue of taxes confronts anyone planning a non-cash incentive and recognition program in the same way as cash—because in most cases, non-cash rewards have to be reported at their fair market value. While certain qualifying length-of-service and safety programs do benefit from generous tax benefits under certain situations, most others are subject to tax when they exceed $600 in value.
We can’t make the taxes disappear, but we can offer a solution that ensures your employees won’t see those taxes coming out of their regular pay. Working in collaboration with our vendors, suppliers, clients, and their payroll service providers, Taxcentives is a unique approach to addressing this tax/reward issue by including the tax impact in the points calculation so recipients don’t later feel the pain of an increased tax payment on their award.Taxcentives also automatically generates the information your organization will need when necessary for the purposes of tax reporting. While we’re not tax accountants, and advise all of our clients to get professional advice, our lengthy experience in our space enables us to point your organization in the right direction by asking the right questions.