In providing these gifts or covering expenses, employers are exposing themselves to new tax regulations that finance professionals may be unaware of. After all, the world of work is rapidly changing—it can be hard to keep up with everything. A few key steps are important in making sure perk programs are compliant:

Talk to your accountants and auditors about any new employee perks or stipend programs you've recently introduced (or are planning to introduce soon).
Standardize your process for keeping track of perk-related activities that may have tax implications.
Stipulate that new perk programs must be evaluated for compliance prior to implementation, so that they don't inadvertently break tax laws (e.g., offering stipends and keeping track of what's taxable and non-taxable).

Amy Spurling is the founder and CEO of Compt, an HR software company that enables companies to offer truly personalized employee perks which adapt to remote and hybrid employee needs while being fully tax compliant and inclusive for global teams.

From: BenefitsPRO

Instant Insights /

Avoid the Audit: The Importance of Taxing Employee Perks

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