Employee Achievement Award

Employee Achievement Award

Employee Achievement Award means:
tangible personal property given as an award to an employee for length of service, productivity, or safety achievement. After 1986, an employer may exclude an employee achievement award from the employee's income only if the employer may deduct the award. To be deductible, the award must be made for length of service or safety achievement, be tangible personal property, be awarded as part of a meaningful presentation, and be awarded under conditions and circumstances that do not create a significant likelihood of the payment of disguised compensation. The total of all nonqualified plan awards made to any one employee during the tax year may not exceed $400. The total of all awards (including both qualified and nonqualified plan awards) made to any one employee during the tax year may not exceed $ 1,600. Former IRC (check if this IRC provision is current here) §274(j)(3).


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