Attractive workplaces for millennials no more under proposed tax reform?

Creating a work environment that you love. That is the goal of some of the top companies to work for – Google, Yahoo!, Zappos, GoDaddy. To create the ideal place for employees to work, a wealth of free employee perks are provided. Tax reform proposal may change how companies and employees view employee perks.

Employee perks can be great for both the company and employees. Employee perks can be inexpensive for companies and it encourages employees to work longer and harder. Employees are able to take advantage of needed services without leaving the workplace. Companies are able to deduct the cost of providing the perk as a business expense. The perks are free to the employee. That may all change with the tax reform proposal. Companies will not be able to deduct the cost of providing entertainment, travel, and other expenses unless the expense is included in the employee’s wages. In other words, a company can deduct the cost of providing you a free gym membership only if they include the cost of the gym membership in your wages. And, you will be taxed on the gym membership benefit. This is a big change. The following are examples of employee perks that will be affected.

Adoption assistance programs
On-site gym along with free workout classes and athletic trainers
On-site massage therapists
On-site laundry services
Healthy living coaching programs
Transit passes and free shuttles
Discounts to museums and other events
On-site haircuts
Moving expense reimbursements
On-site child care center
Employee achievement awards