Beware Tax Implications of Recognition Rewards

Being a big believer in the importance of recognition, I get discouraged when companies shy away from the use of recognition awards because of a fear of the potential tax implications of such awards. Much of this fear is unwarranted and can be put to rest with knowledge of the facts and a strategy to build an effective program within the tax code. Following are relevant guidelines from the tax code regarding employee awards and how you can make the most of this information.