View Full Version : Employee incentives/benefits
I currently offer partial health care for one of my employees. I have been giving them bonuses, but it kind of sucks because its taxed and I have to pay workers comp. Is there any way to get around the tax and the workers comp? I was thinking about contributing to there cell phone bills since I call them on there personal cell phones during the day. Any ideas, please help.
05-08-2009, 12:32 PM
we give $50 a month for cell phone, $70 a month insurance (single guys), and IRA matching contribution to the max.
So the cell phone contribution, health insurance, and ira contribution are all workers comp free and tax free since they all are benefits? I want to give them money towards there cell service and what not but do not want to have to pay workers comp and have the money taxed before it gets to them. Just trying to find a way around all that.
05-10-2009, 08:41 PM
If its not set up correctly, all of the above can be subject to tax. I'll have to get back on this when I'm not bone tired if you're interested.
Anyone have any insight or facts on this subject? I would like to contribute to my employees health care as well as cell phone bill each month. How do I se this up, or can I just cut them a check. I mainly want to do this as a tax free incentive for working with my company. Any advice, knowledge, facts would help!!
05-19-2009, 09:24 AM
you should be paying for the cell phone, it's a business expense,
I know that bonuses are handled diffrently than stright pay.
I had to sue a company once " I was an hourly employee " and I won, But I couldn't get my bouns that they prommised that I had in writting.
Theres no law that says I have to pay for someones cell phone bill. If my employees demand it they can go work for someone else. I run a pretty laid back, well paying business, and I treat my employees well. That includes respect, as well as bonuses. What I am trying to do is to LEGALLY pay/reimburse my employees for a partial health care contribution as well as a contribution towards there cell phone bill, since that is how I communicate with them thoroughout the day. I am looking for some insight on how to go about this the proper/legal way. I guess I will have it in writing what will be contributed to them for there health care and cell phones, and will have them sign it.
Lastly from my understanding bonuses, you still have to pay in workermans comp, which is a load of S#@% if you ask me. Why would you have to pay in to workmans comp when its not a wage paid for work completed by the employee. I guess if we didnt have to pay in to workmans comp for bonuses then every company would pay there employees nothing and then just give them huge bonuses every week/month to avoid having to do so.
05-21-2009, 04:25 AM
their may be no law to compel you to pay their cell bill, but then again their is no law compelling them to allow you use of their personal property, Have them submit their cell bill monthly to you, you keep it and it becomes part of your expenses. Why in the hell are you not using two way radios? or why does your business not have nextel?
The reason you pay workman comp on bonuses is because bonuses are income, quite simple concept their. Why do you feel bonuses are not income?.
wanna get away with not paying workmans comp on bonuses, it is easy as pie, you pay their bonuses out of your personal money. Becouse their is no law to prevent you from giveing your money away.
05-21-2009, 08:52 AM
Get rid of the cell phone usuage and put radios in the trucks.
Two way radios would be nice and Im sure I will have them at some point. For now though cell phones are what we use. If I'm not mistaken, workmans comp is paid in so if for some reason you employee were to get injured on the job they can still have income. Maybe I'm wrong? Income/Bionuses should be taxed in my opinion though.
Stillwater your the man, you have two way radios/nextel, I dont. I'm also sleeping at 2:30am so I can get the job done the next day, while your up believing you know everything.
05-22-2009, 02:20 AM
as for the phone issue. I think I would take the bill from them and pay it as company phone. This may seem a little forward but if you don't have agood accountant, GET ONE. If he or she is good, they will help you give the most without getting hammerd in taxes or other crap. The best way I know how to pay tax free money is to have a daily per dium(spelling). Not sure how to constitute this though.
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