Rewarding employees tax efficiently

Your key employees are the key to the success of your business. It is therefore essential that you keep them highly motivated. Research shows that the way employees are rewarded makes a critical difference to their levels of motivation and productivity.Bonuses and dividends are the traditional way of rewarding key employees. Bonuses may not always be the most tax efficient option and care is needed with dividends, especially with the proposed new income shifting rules, not to mention the tax issues on transferring some of your stake in the business to key employees.

There are now other alternatives that can lead to far higher levels of motivation and productivity – and which, at the same time, can also be more tax efficient than bonuses and dividends. Those alternatives therefore have the potential to improve motivation and productivity levels, at the same time as reducing costs.

Please contact us if you are interested in more tax efficient ways of rewarding your key employees in order to increase productivity and reduce costs.