Spreading Holiday Cheer
As we approach the year-end holiday season, you may be looking for ways to show appreciation to your employees. Expressing appreciation can be everything from a simple "Thank You" note, to gift cards, to cash bonuses, company holiday parties and everything in-between. These kinds of gestures can be a win-win for everyone. They provide a huge boost in employee morale as the cold weather sets in, especially with the emotional and financial stress that many employees feel during the holidays, and they help increase employee loyalty to your business!
If your business plans to give cash bonuses or even gift cards, please be aware that such gifts are generally considered taxable wages by the IRS (unless they are covered by a specific exclusion in the tax laws). Also, if you plan to give discretionary cash bonuses to your employees, be clear in explaining that your company is voluntarily choosing to give those payments - this will help avoid any "expectation" that such year-end bonuses will always be made in the future. It is also wise, and entirely appropriate, to include a note expressing gratitude to the employee. By personalizing the cash bonus, you'll likely find that the employee's sense of being appreciated and valued by your company will carry them far into the new year!
