Help Support the Incentive Legislation Campaign

I’m proud to be on the Board of the Incentive Federation. The Incentive Federation is an umbrella organization founded to promote, protect and research the incentive field, encompassing recognition, promotional products and related promotions.

One of the causes the Incentive Federation supports is national health care reform and measures that can lead to a healthier workforce. As a consequence, the Incentive Federation supports a tax incentive for employers and employees who participate in wellness programs. We believe that a well-designed qualified wellness award that is tax-free to employees would provide the necessary incentive to promote a healthier lifestyle and lead to a more productive workforce.

I’m proud to work with a group of incentive leaders that has been working to establish a presence with members of Congress. Last fall we had a Legislative Summit in Washington to meet with members of Congress on wellness incentives. We need a dedicated voice to “lobby” for legislation that serves our industry, the companies we serve and the hundreds of millions of recipients we touch annually.

As a consequence, the Incentive Legislation Campaign (ILC) was formed in order to make our presence felt on a consistent basis. To do this, we need financial support and input from individuals and companies for our efforts and step in when we need “grassroots” support with lawmakers.

If you would like more information please read the ILC Informational Flyer.

I hope you seriously consider this great opportunity to strengthen our voice in Washington and support of our industry.

Kudos to the Tax Department!

Like most people I’m not a big fan of the tax department, however, kudos should go to the Canada Revenue Agency (CRA) that recently revised its rules on gifts and awards.

A number of years ago the CRA changed its taxation policies on the taxation of gifts and awards. On the whole, our industry viewed these changes very positively, however there were some areas that we felt could be improved upon.

The most contentious was to limit the number of gifts and or awards to two items having a total value of no more than $500. The CRA has amended this policy and as of January 1st, 2010, there no longer are limits to the number of tax-free non-cash gifts and awards you may give to an employee in a given year.

Another issue CRA clarified and simplified was to create a single $500 exemption that employers can now apply against the total value of all the qualifying non-cash gifts and awards you give to an employee. So, if you give an employee gifts and awards with a total value of $650, there is a taxable benefit of $150 ($650-$500).

Follow the link for CRA’s revised policy.

Many companies and groups asked CRA to make these changes and it is good to know that the department does listen!

Now if CRA would only reduce the service award threshold down from every five years to something that reflects the fact that people change jobs every three years, I’d be really happy! And while they’re at it, perhaps they could consider allowing points based performance awards up to $500 to qualify for exemption as well!

But I guess these are battles for another day!