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
