Traditional incentives for skilled employees largely focus on competitive pay. Increase the pay and that’s enough to show you appreciate them and for them to stick around and work hard. Well, that worked for a time, but not anymore.
In the past few years, values have shifted dramatically, and pay is no longer enough. People are sticking around and working harder for employers who give them flexibility and a workplace that shows humanity – appreciation, collaboration, a reason to come together, and benefits for their lives outside of work.
Try doing something personal for your employees, something that’ll increase performance but also loyalty. Opt for something that feels different, a little extra, and is given as a specific acknowledgment – so that appreciation is felt, it becomes a reason for the team to come together and can be beneficial outside of work.
One way you can do this is by buying your employees Gift Cards because it can be both flexible and specific and gives you the cheeky side benefit of decreasing your tax bill.
Here are some answers to the most common questions about Gift Cards and your taxes:
Can I claim gift cards on my taxes?
Yes, as an employer, you can claim up to $300 per employee. This can also extend to the spouses of your employees, your clients, and contractors. Gift recipients do not receive a tax deduction, but for up to $300 it is a tax-free gift for them!
Are gift cards a write-off?
Gift Cards are either tax-deductible, as above, or you (the employer company) have a choice between a non-deductible expense or a deductible expense that is subject to FBT (not GST).
What gifts are not tax-deductible?
Any cards that breach the above limits.
The retailer doesn't matter, you can choose from over 100 retailers here.
What gifts can you claim on tax?
Any gift less than $300 that doesn’t fall under the category of ‘entertainment’ is exempt from FBT, and a tax deduction can be claimed. Once these gifts exceed $300, FBT is payable.
[Disclaimer: GCX does not provide tax advice, please refer to your tax agent for further details]
A little more effort goes a long way, and as you can see above, it can benefit your business in multiple ways. Increase your employee performance and decrease your tax bill all in one go with Gift Cards.
Also! For a limited time we have a special offer for business owners – buy up to $500 worth of Gift Cards and receive 10% off.