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Costs for Employees

Other Employee Costs

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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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