Paid Vacation

Discussion in 'Legal and HR' started by Keval Kapadia, Dec 8, 2016.

  1. Keval Kapadia

    Keval Kapadia
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    As a business owner can't I pay for a vacation for my employee. For instance an all inclusive trip to Las Vegas for a weekend and have him/her charge meals, shows, etc., to a company credit card. Can't this be an a business expense that is tax exempt?
     
  2. Business Attorney

    Business Attorney
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    You can pay for the vacation and deduct it as compensation to the employee, just as you can deduct paying him or her a bonus that he/she can spend to take a vacation (or whatever else he/she wants to spend the bonus on). However, when you ask "can't this be a business expense that is tax exempt", assuming you mean not taxable income to the employee, then the answer is NO. With a limited exception of certain awards of tangible person property (like a watch), any time you give an employee anything of value (subject to some exception for very low-cost items) for performing services, it is taxable to the employee. See http://www.taxhelpadvisor.com/incom...tips/taxation-of-employee-bonuses-and-awards/
     
  3. salenaadam

    salenaadam
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    In the United States, paid excursion is commonly two weeks or less every year for the initial couple of years of work notwithstanding about 10 paid government occasions. By and large PTO hours cover everything from arranged get-aways to wiped out days, and are turning out to be more pervasive in the field of human resource management.
     

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