Case Study

The president of Waukegan Materials, Inc. wants to implement an Employee-of-the-Quarter recognition program. (p. 279) The president has requested the telluric manager to provide a recommendation for an appropriate talent fund and draft a congratulatory letter for the recipient. The president has organized an awards committee which selects each recipient. The president wants a financially answerable gift. The gift and letter are scheduled for unveiling during the succeeding(prenominal) quarterly supervisors luncheon next month. Waukegan is a construction retailer. Waukegan is a blue collar organization. One life-sustaining business issue is the cost of the gift. This business issue is enhance with tax implications to Waukegan Materials, Inc. and award recipients. IRS Publication 525 outlines allowable dollar maximums for employer gifts which get hold of a neutral tax impact. (http://www.irs.gov/pub/irs-df/p525.pdf) Employee achievement award. If you father ta ngible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income.

However, the sire you can exclude is limited to your employers cost and $1,600 ($ cd for awards that are non certifiable end awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as routine of a meaningful presentation, under conditions and circumstances that do not wee-wee a significant likeli hood of it being mask pay. most other c! ritical business issue is to select measuring rod cell criteria for the recognition of an employee each quarter. Tom McMullen notes Fortunes some Admired Companies excel at aligning their programs with business goals (Journal of hire and Benefits, 2010, March). Their committee would develop a vision for Waukegan and accompany that with deport values. This will assist the selection...If you want to get a gigantic of the mark essay, order it on our website: OrderCustomPaper.com

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