When I approach business owners to do a barter analysis and determine whether or not barter can benefit their business, I often am told:
Barter is all well and good but what I really need is cash—cash to cover my overhead and to pay my staff.”
In fact, barter can help acquire and maintain reliable and qualified staff . Barter can create some real excitement at the office. Suddenly your employees will be able to elevate their lifestyle and access health benefits that previously were not available to them.
FIVE WAYS YOUR STAFF CAN BENEFIT FROM BARTER
1. AWARD STAFF WITH BARTER BONUSES AND COMMISSIONS. Business owners are often challenged to both acquire and maintain good staff. Often there is no way that a small to medium sized business can compete in the job market with big corporations or government departments. By awarding staff with barter dollars, either by way of an incentive or as a top up to their salary, they can engage and maintain quality staff. Such awards to staff can be a legitimate tax deduction* for you and if the staff choose their purchases wisely it can make a big improvement in the lives of your employees.
2. USE YOUR BARTER DOLLARS TO PROVIDE AN INFORMAL BENEFIT PACKAGE FOR YOUR STAFF. In any barter exchange you will find a variety of professional health solutions available for you and your staff to choose from. Depending on your region, you could have dentistry available, chiropractic treatments, massage therapy, acupuncture, eyeglasses, and many professional therapists. The list goes on. Such health benefit purchases for staff can be a legitimate business expense* for your company and are often not taxable* for the employee. This is a win win for all.
3. Health and medical claims , whether the treatments are paid for using barter or for cash, are processed the same way. You submit a claim, including the receipt, and the insurance company will refund you all or a sizable portion of the treatment cost in cash. If you or your staff already have benefits you can STILL TAKE ADVANTAGE OF OUR BARTER HEALTH PROFESSIONALS, GET A RECEIPT, AND TURN THAT IN TO YOUR INSURANCE PROVIDER FOR A CASH REFUND. Therefore, you can use your barter to provide a fully tax deductible benefit to staff, even if they already have coverage through their spouse, and they can turn that benefit back into a non-taxable cash bonus*.
4. BARTER CAN FUND YOUR STAFF EVENTS. A common way that members reward their staff is the summer BBQ or the Christmas Party.Using your barter you can have a spectacular staff event which employees will look forward to and appreciate year after year. You can cover everything from the hall to the catering to the decor and the door prizes.
5. KEEP YOUR STAFF FULLY BOOKED AND ENGAGED DURING DOWN TIMES. The rent is paid, the stove is fired up, or maybe the equipment is leased and the truck loaded. Your business is staffed and …..where are all the customers? Almost every business has down times and seasonal slumps. Nevertheless the overhead must be paid and the staff salaries have to be covered. Constant layoffs and lack of sufficient hours can lead to an inability to keep good staff. What better way to keep them motivated than to give them barter jobs during those slower times . If you are in the hospitality industry your staff will fight to serve barter customers. The orders are usually larger and the tips bigger. But no matter the industry, barter sales are typically less stressful to staff . Everyone wins!
Can you use barter to help cover your overhead and your staff ? Yes you can!
* Business owners and their staff should always seek professional tax advice when making allocations regarding barter sales and purchases.
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