Posted on February 16th, 2014

An employer can deduct the cost of an award made to one employee of $400 or less or if a part of a qualified plan award can be $1600 providing it is written and non-discriminatory. The employer can deduct the expense and the worker will not pick it up as income. This would be an item of personal property, not cash, and awarded in a meaningful ceremony. 

This can be a very rewarding and encouraging perk to your best workers with little expense to you.