Sinclair Risk & Financial Management’s expertise in employee benefits gives us the insight needed to help firms develop strategies to acquire and retain top talent. This includes providing executive bonus plans, a simple and cost-effective way to incentivize employees and foster loyalty.
With executive bonus plans, key employees buy Life insurance with employer dollars. As the employer, you pay the premium and add the amount to the employee’s taxable income. You could also opt to pay the employee a bonus with the after-tax dollars used to pay the premium.
What’s more, there are several benefits to executive bonus plans in that they offer flexibility, control, and tax benefits:
- Bonuses are tax deductible for your company
- No participation requirements
- No restrictions in the actual bonus amount
- No IRS approval needed
The Life insurance will provide your executive with death benefit protection for his or her family and can also be funded to provide tax-advantaged retirement income as well.
Rewarding top employees as a retention strategy.
Sinclair’s financial planning advisors will be happy to discuss the details of how executive bonus plans work and serve as a valuable employee retention strategy. Give us call at 203.265.0996, email us, or return the form on this page.