Every employee likes to be recognized and know that excellent performance can lead to additional rewards. Often, this comes in the form of a raise in salary.  In some cases, a raise isn’t always appropriate or possible. A Grooming Allowance (reimbursement for goods and services that enhance the employee’s appearance) can sometimes be a great alternative to a raise.  Here’s why: 

•  It’s a guilt-free opportunity for the employee to spend money on things to boost their image (hair styling, manicures, clothing, etc.) rather than pay their utility bill.  
• Novelty – this can be a nice surprise for the right employee at the right time.  
• A well-groomed staff is a benefit to the practice.   
• There is no payroll tax liability for the employee or the practice.

Check with your accountant for specific advice on this unique way to show appreciation for a job well-done.