Tax Services

How Employee Benefits Make Your Company Productive

»Posted by on Oct 28, 2019 in Tax Services | 0 comments

Employee benefits and benefits in kind include different types of compensation categorized as non-wage and are provided to employees aside from their normal salaries or wages. In most countries worldwide, most kinds of benefits provided to employees are taxable in some particular degree.

Examples of employee benefits include the following:

  • Housing (employer-paid or employer-provided)
  • Group insurance (dental, life, health etc.)
  • Daycare
  • Company car
  • Disability income protection
  • Retirement benefits
  • Tuition reimbursement
  • Vacation (non-paid or paid)
  • Social security
  • Funding of education
  • Profit sharing
  • Other specialized benefits

The purpose of providing these employee benefits is to boost the productivity of every employee. It can also help in increasing the economic security of your staff members. It also improves worker across the company as this component is one kind of reward management, which in turn will give positive feedback to your organization. For example, if you provide a company car to your employee, he will probably arrive to the office on time and is able to produce more work than coming in late due to traffic when commuting public transportation.

Employee benefits are subdivided into taxable and non-taxable. Listed below are some benefits that can be considered as non-taxable but terms and conditions also apply. Aside from these benefits can already be categorized as taxable. You can visit the official website of HMRC to learn more detailed guidance and to get definitive list of employee benefits.

  • Supplies, services and accommodation on the business premises of your employer
  • Services and supplies provided to you aside from that on the premises of your employer
  • Subsidised or free meals
  • Meal Vouchers
  • Expenses incurred providing a pension
  • Medical treatment abroad
  • Medical check-ups and health screening
  • Playschemes and nurseries
  • Childcare vouchers
  • Other childcare supported by employer
  • Certain living accommodation
  • Payments made by your employer when you work at home and have additional household costs.
  • Incidental overnight expenses
  • Travelling expenses of directors
  • Travelling expenses of a group company employees
  • Subsistence and travelling expenses following strike disruption
  • Cost of travel of disabled employees between work and home
  • Certain retraining costs
  • Employer-reimbursed or employer-funded training
  • Long service awards
  • Suggestion schemes (Encouragement awards and Financial benefit awards)
  • Goodwill entertainment
  • Bicycle, motorcycle and car parking
  • Certain gifts
  • Cost of travel from work to home when sharing arrangements are being disrupted or when you work late.
  • Subsidies to work buses and public buses
  • Annual parties (e.g. Christmas party)
  • Sports facilities
  • Working Rule Agreements
  • Counselling
  • Welfare counselling
  • Mobile phones
  • Cycling and bicycles safety equipment
  • Loans for a purpose, which attracts the tax relief in full

Employee benefits are simply complicated and without extensive knowledge with regards to this field, you won’t be able to straighten things out. A practitioner who is expert in this field can provide you with advices fitted to the situation of your business and can also remove the need to do extensive and time-consuming research. To know more about it, it’s best that you consult a reliable and highly reputable accounting firm in your area such as cabinet comptable Angers to handle all the monetary operations of your business.

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