We’ve seen first-hand the affect experiential rewards can have in your workers’ engagement and general firm tradition. You should use them to have a good time worker anniversaries, reinforce firm values, and even assist promote a greater work-life steadiness.

However we additionally know sending your individuals on experiences like a sundown skytour, wine tastings, or glamping journeys remains to be a comparatively new method to worker rewards, which raises some questions.

For instance, some typical queries we get about rewarding with experiences embody:

  • Are worker rewards and incentives taxable?
  • How do you deal with legal responsibility from worker rewards packages?
  • What’s the reward reserving expertise appear like for my workers?

We reply these FAQs and dig into what it’s essential find out about experiential rewards so you may really feel totally ready to associate with us and produce Blueboard to your group. 

How do you deal with legal responsibility from worker rewards packages?

From digital golf getaways to horseback using classes, Blueboard provides your workers alternatives to discover their passions and take a look at new issues. 

A color photograph of two people on horseback on a sunny day outside. There are yellow sunflowers between them as they each sit on top of their horses.
Mayra S. (on proper) enjoys a horseback using lesson, an worker reward Mayra chosen from the Blueboard expertise menu.

Nonetheless, like every exercise, there might be dangers, so legal responsibility have to be part of the dialog. 

Listed below are three ways in which Blueboard addresses legal responsibility when rewarding with experiences:

1. Staff select their rewards. 

Firm occasions could be a enjoyable strategy to acknowledge and have a good time your staff, however they may not be all people’s concept of a very good time—which may result in some legal responsibility issues. As compared, experiential rewards give your workers the facility of alternative. 

Actual-world instance: Jim Moran & Associates Inc. shifted from in-person occasions to Blueboard’s individualized, experiential rewards through the COVID-19 pandemic to acknowledge their salespeople in a approach that higher fits their workers’ consolation ranges.  

2. Award recipients should click on on a non-editable waiver checkbox to redeem their reward. 

As soon as a recipient finds the expertise they wish to strive, and earlier than they’ll e-book, recipients should decide in by checking a field that acknowledges consciousness of any guidelines and dangers. This automated settlement is a legally binding contract between the recipient and your group, which is a further layer of authorized safety.  

3. Admins can add a personalized legal responsibility waiver into their Blueboard system. 

In case your group has its personal legal responsibility waiver, you may add a textual content legal responsibility type to the Blueboard platform. You’ll be able to customise this waiver so {that a} reward recipient has to learn and verify with their acknowledgment earlier than logging into the curated experiences menu, submitting their preferences, and filling out their profile.

A screenshot of an online liability waiver and text that Blueboard award recipients must read and check to continue booking a Blueboard experience.
A screenshot of the Blueboard legal responsibility waiver.

Are Blueboard experiential rewards taxable? 

Worker expertise rewards have an inherent money worth which the IRS can contemplate as compensation, making them taxable. Nonetheless, security or length-of-service rewards (i.e., anniversary awards) are tax-exempt so long as they fall underneath IRS worth limits.

Now it’s possible you’ll surprise who pays the tax—the worker or the employer? Effectively, there are execs and cons to each choices. 

Possibility 1: Worker pays the tax.

  • Professionals: This feature relieves your group of the tax burden, which may also help your backside line.
  • Cons: Your workers would pay 28% of the worth of the reward in revenue tax. The quantity would possible come out of their paycheck after redeeming their reward, which may bitter the expertise. The detrimental fallout from a poor redemption course of may additionally damage your organization’s general recognition program efforts.

Possibility 2: Employer pays the tax.

  • Professionals: Your workers can take pleasure in their reward with out worrying about taxes or seeing a deduction on their subsequent paycheck.
  • Cons: You’ll need to extend your organization’s recognition funds to cowl the taxes—however just for taxable rewards.

How does taxation work with experiential worker rewards?

To maximise the affect of your experiential rewards program, we suggest that your group pay the taxes so your worker will get the overall face worth of the reward. You are able to do this by “grossing up” the worker reward by together with the taxes the worker would’ve needed to pay out of pocket. So, for instance, if an experiential award is price $1000, you’d “gross up” the reward worth in your accounting system—on this case, by $257.54—to cowl the taxes.

You will discover the taxable reward worth in your Blueboard Admin Instruments and export this as a CSV file at any time. Sometimes, our purchasers pull a report on the finish of the yr with all rewards despatched and their reward values so their payroll staff can gross up taxes on the finish of every yr. 

Additionally, legally we can not present tax recommendation, so we suggest you’re employed straight along with your group’s payroll staff or tax legal professional to find out the most effective tax administration technique. 

What does the reserving expertise appear like for my workers?

Once you consider all the selections concerned in reserving an expertise (e.g., choosing an exercise, finalizing a date, determining cost, and so on.), the entire planning course of can shortly get overwhelming. 

Happily, our Concierge service removes all of these logistical obstacles. We’ll pair your award recipient with a private Concierge who will deal with all of the planning and scheduling work so your workers can concentrate on having a good time.

Watch the video under to see the worker reserving course of in motion or hold studying to study extra about every step within the reward redemption movement.

  1. Create an account and reply a number of fast questions. To start out, your workers have to enter their location, most well-liked time zone, most well-liked contact quantity, and private e mail to create their accounts. 
A screenshot of a computer screen with questions to create a Blueboard rewards account.
Blueboard reward recipients reply a number of questions and are on their strategy to selecting an expertise.
  1. Enter a location and discover experiences close by. As soon as they arrange their account, your workers can evaluate a curated menu of native experiences and choose their prime decisions. From meditation retreats to cooking lessons to parkour classes, there’s one thing for everybody. 
  1. Discover your good expertise and click on “Join with Concierge.” Submit any preferences––akin to most well-liked dates, how many individuals are of their get together, or in the event that they want any lodging––and Blueboard pairs award recipients with a Concierge to information them by way of the planning course of. The Concierge will attain out to the recipients through telephone or e mail to finalize all the small print. 
  1. A Concierge will work with reward recipients each step of the way in which. A Blueboard Concierge will schedule your worker’s expertise with their most well-liked supplier and assist fulfill any particular wants or necessities. Your worker has the ultimate say: nothing will get booked with out their affirmation.
  1. Obtain the expertise itinerary from the Concierge and go #blueboarding. A Concierge will ship your worker an e mail with all of the reserving particulars, so all they’ve to fret about is benefiting from their expertise. 

A brand new strategy to acknowledge and reward your workers. 

Whereas firm swag or plaques can get forgotten in a desk drawer, a Blueboard expertise may assist your worker create recollections that might final a lifetime—like climbing Mile Excessive in Denver or touring the South Coast of Iceland. 

Experiential rewards are additionally an extremely highly effective and private strategy to put money into your workers and present them that you just care about them. Simply suppose: as a substitute of sending a generic reward card or money bonus, you might reward a nature-loving staff member with a kayak tour on the clear, glowing waters of Lake Tahoe.

When contemplating a brand new worker rewards platform, it’s comprehensible to have a number of questions. Now that you just’re up to the mark on the authorized and monetary features of experiential rewards you can begin rewarding and sending your workers on unbelievable, memorable experiences with Blueboard.