IRS rules for veterinary employee discounts (of course there's such a thing)
If your team members meet certain thresholds, price breaks may need to be reflected in their W-2s.
One perk of working in a veterinary clinic (aside from cavorting with canines and kittens on the job) is the potential for reduced prices on goods and services. But, wouldn't you know it, the government wants to get a slice if employees exceed specific parameters. Fetch dvm360 conference speaker Gary Glassman, CPA, lays out the discount guidelines:
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"You cannot offer any more than 20 percent on services and products should be offered at cost plus 10 percent," he says.
It's not that you can't surpass those thresholds, Glassman explains. But doing so constitutes additional income that should be represented in employees' W-2s in the eyes of the IRS.
Watch the video for more.
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