Introduction: You’ve assembled a stellar team who continually surpass expectations
Their unwavering dedication and effort have been key contributors to your success. You want to express your gratitude, but how do you reward your employees without adding extra burdens to your finance team or your bottom line?
The Challenge: Decoding the Tax Implications of Employee Rewards
Choosing the perfect reward can be more complex than it first appears, especially when tax implications come into play. While throwing a party or gifting event tickets might seem like an exciting idea, these entertainment gifts come with tax limitations that could give your accountant a headache.
The Solution: Switch to ‘Non-Entertainment’ Gifts
Instead of navigating through the tax complexity of entertainment gifts, why not consider the more straightforward ‘non-entertainment’ options? Gift cards could be the answer to your problems. These rewards can be classified as ‘minor benefits’ by the Australian Tax Office, ensuring the rewarding experience is as beneficial for your balance sheet as it is for your team’s morale.
GiftPay eGifts: More Bang for Your Buck
GiftPay eGifts bring a multitude of benefits:
- They’re fully tax deductible and exempt from FBT if under $300 in value, making them an economical choice for your business.
- These rewards are not linked to regular service, thus maintaining their special ‘reward’ status.
- Your employees won’t incur any personal income tax, unlike with bonuses or salary increases.
- They provide your employees with the flexibility to choose their own reward from over 100 different retailers, thus ensuring employee satisfaction and engagement.
The Value Beyond the Monetary Reward
Receiving a monetary reward is fantastic, but the emotional value that comes from acknowledgement can be equally rewarding. GiftPay eGifts can be customised so they can be an excellent medium to highlight your employees’ efforts, making them feel seen and appreciated.
Conclusion: A Win-Win Solution with GiftPay’s eGifts
Show your employees you care by giving them the gift of choice, simplify your reward processes, and keep your accountant happy. GiftPay’s eGifts should be your go-to solution for employee rewards. After all, a happy team leads to a thriving business. Make the smart choice with GiftPay today!
Please be sure to refer to the ATO for details or consult a professional tax adviser.
