Administering an employee benefits program is one of an HR department's most sensitive tasks as it has to satisfy two parties – the staff and management. The former wants rewards for their effort and dedication while the latter prefers overhead to remain as low as possible.
Capitalizing on tax-free perks can help ensure that both of these groups are happy without either having to compromise. The HR department should research various options to determine which ones would work best for their enterprises. The following is a look at some employee benefits that don't carry hefty taxes.
Continuing education
Knowledge is power in today's economy. Employers want contributors who are well educated, and workers want to earn degrees without having to pay the high prices charged by many institutions. According to the American Express OPEN Forum, education is a tax-free benefit that many people enjoy.
The news source points out that this perk is advantageous because it gives companies an increasingly knowledgeable workforce. Additionally, many employees will apply their lessons to work, usually resulting in improved productivity and new strategies.
Phones
It's nearly impossible to survive in the modern business world without a cell phone, be it a smartphone or an older model. Unfortunately, these devices can be expensive, and service providers charge high prices for network connectivity.
Employers can help their staffs with this expense by implementing a tax-free benefit. Accounting Today writes that there are no taxes when a company gives workers phones or reimburses them for gadgets used for corporate matters. The phone must be used a primary business line in order to avoid taxes.
Commuting options
The American Express OPEN Forum also notes that a number of commuting benefits are also tax-free. First, the news source explains that when an employer pays directly for a company car and associated costs like gas, there are no taxes. For workers, this means that they have an inexpensive way to travel between the office and other locations.
Additionally, businesses can receive tax breaks for offering public transportation benefits. Many transit organizations allow enterprises to buy passes in bulk so they can be distributed to members of the workforce who commute on a regular basis. Many employees will appreciate this perk because public transportation isn't always budget friendly.