Blog | Entrepreneurship

Awards in the Workplace

Read time ...

meet your own rich dad - start your quiz now

When you're looking for ways to let your corporation work for you, awards can be a useful way to reward shareholder-employees and employees. Your corporation can take a deduction by making awards to employees going above and beyond. (And in some cases the awards can even be tax-free to the employee.) For example, in a small corporation where husband and wife share corporate duties, the founder might receive an award for being the employee there the longest, while the other spouse might receive an award for creating a safe working environment at the corporate location. Know that the IRS requires that there be a written qualified award plan for this to work.

But done right, such awards are considered fringe benefits by the IRS. While some awards will be taxable and included as income for the employee others may be excluded from any taxes. Cash, its equivalent, gift certificates and other intangibles such as vacations, meals, lodging, stocks, bonds and other securities are always taxable. But tangible property (think golf clubs and TVs) may be excluded from taxation.

Original publish date: March 27, 2013

Recent Posts

How to Get Rich Investing in the Stock Market
Paper Assets

How to Get Rich Investing in the Stock Market

Introducing 3 stock market investment strategies and which of them can make you rich

Read the full post
The Exact Formula for Paying Off Credit Card Debt
Personal Finance

The Exact Formula for Paying Off Credit Card Debt

Want to be debt-free in record time? See how the Kiysoaki's method eliminated their debt in just a few years

Read the full post
7 Proven Strategies for Real Estate Investing
Real Estate

7 Proven Real Estate Investing Strategies To Make You Rich

Interested in learning proven strategies for succeeding as a real estate investor? Get professional tips here.

Read the full post