In March, when the coronavirus was declared a pandemic, employers collectively asked millions of employees to pack up their desks and start working from home.
Eight months later, 42% of the U.S. workforce is still working remotely. And for many, that’ll continue indefinitely, with almost half of those employees now expected to work from home on a permanent basis. As companies continue to adjust to the way they operate, employee perks are also changing.
No employees in the workplace means no summer dress-down Fridays, no birthday lunchroom celebrations, and no other workplace-centric employee perks. That has many businesses reimagining ways to keep employees engaged and feeling valued.
Whether they’re perks associated to technology, wellness, or work-life balance, employers are getting very creative.
- Some employers hosting end of the week happy hour are reaching out to employees, taking drink orders, and having drinks and other goodies delivered to their homes.
- Companies that provided catered lunches have shifted the perk from at work to at home, offering a stipend for restaurant delivery services.
- Firms have sent workers tech equipment like selfie lights and noise-canceling headphones to make virtual meetings easier.
- Some employees not equipped to work from home were supplied with home office furniture, including desks, chairs, laptops, and accessories.
- Employers who understand this situation can take a toll on a person’s wellbeing are also offering mental-health-related perks, like virtual workout programs and streaming services.
With the holidays around the corner, many businesses with a large portion of their workforce still working remotely are looking for unique ways to make them feel appreciated. Whether it’s UberEats or Disney+, employee perks are a form of compensation. And, like many forms of compensation, some employee perks come with tax implications.
There are plenty of employee perks that are exempt from taxation, including de minimis, which are perks that hold such a small value it would be unreasonable or impractical for employers to account for them. The IRS has a complete list of nontaxable benefits on their website.
Employee perks are a great way to get employees engaged and keep them feeling appreciated. If you’ve been considering gifting your workforce some remote perks but are still unsure about the tax implications, contact the knowledgeable accounting team of Boris Benic and Associates. We can help you navigate the uncertainty.