The following is a list of some of the benefits client companies have experienced when implementing their own custom PIP plan;
- The company has an active role in helping their valuable sales
associates / employees plan for their financial future. - A reduced cost in training because the sales associate / employee stays with the company.
- Bonus incentives result in increased company production and performance levels.
- By implementing the PIP the company can use this as a tool to control commission or salary expenses.
- The PIP creates increased retention ratios through the use of custom vesting schedules.
- The PIP allows a company owner to discriminate as to who can benefit from the plan. There is no company contribution to the PIP if production levels are not achieved.
- Production bonuses are tax deductible.1,2
Disclaimer
- Neither Custom Benefit Services, LLC or your local financial professional are in the business of giving tax or legal advice. For a professional opinion please consult your local tax or legal advisor.
- Any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion of marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor. U.S. Treasury Circular 230.
