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Costs for Employees

Other Employee Costs


Other Deductible Employee Costs

In addition to employee training and education costs and employee benefit costs, here are some other employee expenses you can deduct from your business tax return:
  • Employee wages and employee benefit costs including costs for health plans, insurance plans, retirement and pension plans

  • Subscriptions to trade journals and magazines used by employees in the course of business

  • Employee awards, including achievement awards, service awards, safety awards, sales incentive awards.

  • Bonuses or other additional compensation paid to employees

  • Prizes to employees given as a result of a contest; a sales contest prize, for example

  • Christmas or other holiday gifts to employees, either in cash or in kind (de minimus rules apply)

  • Childcare expenses for employee children, if a plan is in place

  • Commissions to employees for sales, securities sales, agent fees, and other commissions

  • Employee events, such as dances, picnics, holiday parties, outings, or other entertainment

  • Living expenses for employees (while on long-term assignment, for example) for company purposes

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