Case Study

The chairwoman of Waukegan Materials, Inc. wants to implement an Employee-of-the-Quarter recognition program. (p. 279) The president has requested the winding manager to provide a recommendation for an appropriate gift fund and draft a congratulatory letter for the recipient. The president has organized an awards committee which selects each recipient. The president wants a financially answerable gift. The gift and letter are scheduled for initiation during the succeeding(prenominal) quarterly supervisors luncheon next month. Waukegan is a construction retailer. Waukegan is a blue collar organization. One tiny business issue is the cost of the gift. This business issue is sharpen with tax implications to Waukegan Materials, Inc. and award recipients. IRS Publication 525 outlines allowable dollar maximums for employer gifts which convey a neutral tax impact. (http://www.irs.gov/pub/irs-df/p525.pdf) Employee achievement award. If you admit tangible personal pr operty (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income.

However, the stimulate you can exclude is limited to your employers cost and $1,600 ($ cd for awards that are non certifiable broadcast awards) for all such awards you develop during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as routine of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being mask pay. slightly other critica! l business issue is to select measuring magnetic pole criteria for the recognition of an employee each quarter. Tom McMullen notes Fortunes some Admired Companies excel at aligning their programs with business goals (Journal of struggle and Benefits, 2010, March). Their committee would develop a vision for Waukegan and accompany that with exact values. This will assist the selection...If you want to get a widely of the mark essay, order it on our website: BestEssayCheap.com

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