Our Annual Holiday Workplace Policy Update
The holidays are upon us and for business owners, this means time to relax, enjoy the time off and leave your worries behind. Right! Exactly the opposite for employers. The holidays can usher in new workplace headaches and requires planning ahead to anticipate some of the problems that might arise. Here are a few tips to help you maintain control through the end of the year.
Holiday Bonuses or Gift Cards
The question arises every year regarding bonuses and gifts to employees and whether they are taxable. Here’s the bottom line in most cases…Yes!
Unless a gift or bonus can fit into the description of a “de minimus benefit, it is considered taxable income. In general, a de minimis benefit is one for which, considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical.
What is not considered a de minimus benefit would be anything that is a cash equivalent, such as a gift card or gift certificate that can be exchanged for something of any significant value. The IRS gets technical here so use your own judgment whether you would declare as income, small value coffee house or restaurant gift certificates.
The Company Holiday Party
Holiday parties are breeding grounds for alcohol induced sexual harassment issues, relationship problems and driving accidents. Be sure to monitor alcohol usage and help employees arrange alternative rides home. Be cautious not to allow a designated driver of the opposite sex to take an inebriated employee home. What happens after they leave can wind up back on your doorstep.
Remind employees of your sexual harassment policy! Employees that decide to “get together” after the party can end up in workplace or sexual harassment issues. Be cautious and monitor your employee’s behavior.
Decorating the Office
When decorating the office, be considerate of employee’s religious beliefs. Of course, we all have freedom of speech, but it’s wise to be mindful of the various religions and ensure you give equal opportunity to those of the Christian, Jewish, Muslim or other faiths.
Scheduling Employee Time Off
If your company is open on normally scheduled holidays, decide in advance how you will select which employees work on holidays. If possible, request first that employees volunteer to work alternating holidays and make it worth their while with a small bonus or premium for working holiday hours. (See our blog on managing holiday scheduling conflicts HERE)
You may deny or limit vacation days due to business conditions. This should be written in your vacation or time off policy. If you do this, tread carefully, the morale of your employees can do far more for production than forcing them to work when they really don’t want to or can’t.
Holiday Pay
Holiday pay is not required by law, but if you do have a policy, make sure it is fair, consistent and that you follow it as written. Accommodate employee’s request to take time off for religious holidays unless it will cause undue hardship.
Paydays That Fall on a Holiday
If an employer is closed on a payday that falls on Thanksgiving, the Friday after Thanksgiving, Christmas or New Year’s Day, the employer may pay wages on the next business day. It’s best to communicate to employees ahead of time what day their payday will fall when there is a conflict.
If you have questions on managing any holiday headaches you may have, Infinium HR is your solution. Just email us at info@infiniumhr.com