Corporate Incentive Travel

Trying to figure out where to send your employees for your next incentive travel trip? Here are some ideas that may help sway your decision:

Domestic options:

Just a few options for domestic trips include things like Las Vegas, Hawaii, Lake Tahoe, Florida and California. Domestic airfare can sometimes be cheaper and if your business is in the same state as the incentive trip you choose airfare might not even be an issue.

Imagine an incentive trip to Napa Valley or San Francisco. Arrange for your employees to dip their toes in the beaches of Florida or Hawaii. There’s always fun to be had in Las Vegas and Lake Tahoe offers a serene retreat. There are all inclusive resorts in the states and there are theme parks in several states to choose from. The possibilities of domestic trips are endless!

International Options:

If you insist on sending your employees out of the country, first be sure they have their passport! Sometimes you will get lucky and find that trips out of the country can be cheaper than domestic ones. Pricing and options depend on the season, the location and many other factors.

The most popular option for all-inclusive trips is the Caribbean. Check out our post about the benefits of choosing an all-inclusive resort. The Caribbean feels worlds away from the states even though it’s so close by. There are unique experiences with gorgeous views everywhere from Aruba to the Bahamas, Jamaica to Turks & Caicos.

All-inclusive resorts in Mexico are a popular option because of low cost flights and all-inclusive accommodations.

Another popular option is Europe but how wide you will need to open your wallet depends on the country you choose for the trip.

Remember, whether you decide to stay domestic or go international, Elite Travel will work with you to help you decide on the best option for your budget.

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After deciding to give your employees incentive trips you may be wondering- What is tax deductible and what’s not? Below is just a glimpse of what you need to know about what is tax deductible regarding awarding trips and bonuses to employees.

Bonuses – You can generally deduct a bonus paid to an employee if you intended the bonus as additional pay for services, not as a gift, and the services were performed. However, the total bonuses, salaries, and other pay must be reasonable for the services performed.

 Awards – You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. If you give property to an employee as an employee achievement award, your deduction may be limited.

Achievement awards – An achievement award is an item of tangible personal property that meets all the following requirements.

• It is given to an employee for length of service or safety achievement.
• It is awarded as part of a meaningful presentation.
• It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay.

Deduction limit – Your deduction for the cost of employee achievement awards given to any one employee during the tax year is limited to the following.

• $400 for awards that are not qualified plan awards.
• $1,600 for all awards, whether or not qualified plan awards.

A qualified plan award is an achievement award given as part of an established written plan or program that does not favor highly compensated employees as to eligibility or benefits.

A highly compensated employee is an employee who meets either of the following tests.

1. The employee was a 5% owner at any time during the year or the preceding year.
2. The employee received more than $115,000 in pay for the preceding year.

Deduct achievement awards as a nonwage business expense on your return or business schedule.

Are you more confused now than you were before? When in doubt, ask your accountant!

#TammyLevent #EliteIncentiveTravel #incentivetravel #incentivetripsandtaxwriteoffs

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Your numbers are in and you didn’t meet the quota this time for your free incentive trip. Now you’re bummed out and trying to cope. Now what?

– Remember you can try again next time: Odds are you will have another chance to earn a free trip. Most companies that do incentives for trips realize they are so successful they offer more!

– Figure out what went wrong: You had the same chance everyone else did to make this quota. Assess why you didn’t meet your numbers. Did you procrastinate too much? Was your sales-pitch stale and/or in need of an upgrade? What will it take to help you earn the trip next time?

– Ask for help: If you have figured out something that cost you the trip that your coworkers or boss can help you with ASK!

– Don’t be a hater: One of the most important things is to not be jealous of and mean to your coworkers that did earn the trip. Again, you had the same chance they did. You would want them to be happy for you if you earned the trip so you should show them the same courtesy. It’s important to remember that being a hater could also get you on the boss man’s bad side and no one wants to be there.

– Keep in mind you still made money: Sure, it is unfortunate you didn’t earn a trip this time, but the good news is you were still making money. You still have a job. Not everyone can say that so be grateful for that at least.

– Fuming and pouting get you nowhere: Being upset won’t get you on that trip and it honestly won’t make you feel any better. In fact, being overly upset could cost you your job. If your boss doesn’t think you can roll with the punches you could end up with a pink slip instead of another chance to earn a trip. Just accept you missed out, let it go and gear up for round two!

#incentivetravel #TammyLevent #EliteTravelGroup #EliteIncentiveTravel

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