Dive Brief:
- In today's ultra-competitive world, it's very difficult small businesses to match the salaries offered by larger companies.
- The solution? Focus on benefits and perks that make employees happy and are still cost- and tax-efficient, according to Forbes.
- Opportunities to build loyalty are as individual as a specific business culture, but there are some out of the box ideas to consider, says author Kelly Phillips Erb.
Dive Insight:
The good news is some fringe benefits are not taxable, Erb writes. While taxable fringe benefits can still be great, there are several that are generally tax free to employees.
For example, achievement awards at the office are a good thing: who doesn’t want to be told that they’re awesome? While cash equivalents, gift certificates and compensation for a job well done may be taxable, the value of any tangible personal property you give to an employee for length of service or safety achievement is not taxable. Dollar limits may apply depending on the type of award.
Other ideas include company-provided cell phones that are shared for personal use, discounts on company products, on-premises food, gym memberships, life insurance (to a certain amount) and tickets to sporting events or concerts do not cost employees tax dollars.
Erb's bottom line: there are many ways to keep employees happy without cleaning out the balance sheet in the process.
