When it comes to navigating the world of employee benefits, there’s a lot to take in, especially if you’re a first timer. Among the suite of benefits you’re likely to be offered, voluntary benefits are often misunderstood. What are Some Examples of Voluntary Benefits? Voluntary benefits include a variety of options, all designed to...
Many employers offer employees wellness programs to encourage a healthy lifestyle. A common motivator behind employee wellness programs are incentives and prizes awarded for participation. Understanding what types of incentives to utilize can be tricky. Incentives need to be something that the employee wants so they are motivated to act but not something that they will be taxed on. There is a difference between a taxable and a non-taxable incentive. Taxable incentives include cash and non-cash payments such as bonuses paid.
Here are a few examples of non-taxable incentives that employees will enjoy:
Provide healthy snacks to your employees.
Most everyone loves it when there is free food offered. Offer fruit, oatmeal or granola rather than donuts, muffins or Danishes.
Hand out company-branded items.
Give out sweatshirts, coffee mugs, backpacks, water bottles and stress balls as prizes to your employees.
Offer discounts on popular fitness brands and items.
Offering a discount for these items will encourage your employees to get involved.
Decrease the insurance premiums.
Talk about motivation! Encourage an employee to drop a bad habit by offering to decrease premiums. It’s a win-win for the employee.
Add funds to an employee’s HSA or FSA.
Offer a contribution if an employee participates in a health screening.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.