What does tax season have to do with employee awards?

Royal Recognition knows a thing or two about tax deductible employee awards.

In the United States, the IRS allows businesses to deduct up to $1,600 for qualified employee achievement awards in any given calendar year. But what makes an award qualified?

In sum, qualified award means an item that is given to an employee by an employer to honor an achievement.

To help you draw the line between deductible and non-deductible, we’ve created a little quiz. We hope you enjoy it!


Is it deductible?

Question #1: Safety Award

Safety Awards do qualify for tax deductions with caveats. According to the IRS:
An award for safety achievement will qualify as an achievement award unless one of the following applies.It is given to a manager, administrator, clerical employee, or other professional employee. During the tax year, more than 10% of your employees, excluding those listed in (1), have already received a safety achievement award (other than one of very small value).
Please visit the IRS' website for more information on Safety Awards.

Question #2: Gift Cards

Gift cards, while more presentable than cash, are still considered money. Gift cards are not tax deductible.

Question #3: Achievement Plaque

An achievement plaque is absolutely tax deductible.

Question #4: Weber Genesis Grill

If the gift is part of a qualified Length of service award program and given as part of a meaningful presentation, the item is tax deductible.

Question #5: Vera Bradley Bag

A Vera Bradley bag, or any other high-end brand bag, if part of a qualified Length of Service award program is tax deductible.

Question #6: Money or Cash

Money is treated as an exchange of currency, and therefore is taxable.

Question #7: Travel Vouchers

Travel vouchers will be taxed.

next


The above quiz was created by Royal Recognition for advertising purposes and is not meant to be used as legal advice. For actual IRS guidelines, please visit irs.gov.

Success Stories Logo, Gundersen

Royal Recognition Success Stories, Issue 1

Royal Recognition is proud to broadcast our first audio case study!

Royal Recognition Success Stories Logo, Gundersen

Introduction to Gundersen Health Systems

Gundersen Health System is where caring meets excellence through a comprehensive health network of wholly owned services and regional partners. It’s where nationally recognized quality meets dedicated, compassionate professionals, caring for patients in all stages of life.

Royal Recognition’s Project

Gundersen also cares deeply for its employees. Royal Recognition breathed new life into Gundersen’s corporate culture through our personalized approach to recognition, support and wide variety of program customizations.

Issue 1 of our audio case study introduces our colorful cast of characters, how Gundersen implemented their original High Five & REWARD recognition programs and how far they’ve come.

Contact us today for the download link!

Royal Recognition Featured in HRO Today 2015 Baker’s Dozen Customer Satisfaction Ratings

Thanks to YOU, our wonderful customers and their employees, Royal Recognition has been voted one of the top recognition providers in the country as published by HRO Today Magazine!

HRO Today Baker's Dozen Recognition Winner

According to HRO Today’s website:

HRO Today’s Baker’s Dozen rankings are based solely on feedback from buyers of the rated services; the ratings are not based on the opinion of the HRO Today staff. We collect feedback annually through an online survey, which we distribute both directly to buyers through our own mailing lists and indirectly by sending service providers the link to send to their clients.

“We are thrilled to be included in this year’s Baker’s Dozen rankings” said Dan Cull, National Sales Manager at Royal Recognition. “It is such an honor to serve our clients–only with their help are we able to innovate on a daily basis. We are proud to bring our award winning solutions to a very competitive marketplace and continually surpass recognition goals.”

This significant award was presented to Royal Recognition for their Total Recognition Solutions, Service Awards / Career Milestones, Peer to Peer Recognition programs and more. Click here to view the entire article.

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