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Thank your staff with a holiday office party

Thank your staff with a holiday partyEntertaining your employees with a holiday party can build company spirit, say thank you and celebrate the spirit of the season all at once. And here's a fact that will banish any Scrooge-like thoughts: Holiday parties for your staff are fully tax-deductible.

Add your favorite customers to the guest list and you'll still get a deduction -- but it will only be for half as much. The IRS allows a 50 percent deduction on entertainment expenses that include clients.

Though some ambitious souls had this year's celebration planned in January, there's still time to put together a seasonal shindig to celebrate your company's holiday spirit.

What's it going to be?
What kind of party do you want to throw? A team-building volleyball tournament at an indoor club? A family day at a local amusement center? Or perhaps you are picturing yourself greeting guests arriving for a dress-up "do" at a local landmark.

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Selecting the type of party you want to give becomes much easier once you've decided what you want the party to accomplish. Ask yourself if you want the party to be an opportunity to:

  • Let your employees and their families know how much you appreciate them.
  • Note individual and department contributions to the company.
  • Provide a team-building opportunity for employees.
  • Give your employees and their loved ones a special evening of entertainment.
  • Simply say thanks and celebrate another good year.

Corral your budget
Whether you are doing the legwork yourself or have someone helping you, a budget fences in your possibilities. Generally, you can cater a lunch for your office staff for around $10 a person.

Local and regional theaters often offer group rates for blocks of 10 or more tickets for a performance.

For dinner and drinks, plan to spend around $25 to $30 per person. Concern over potential liabilities connected with alcohol has prompted some businesses to serve only non-alcoholic beverages. Others have solved the drink dilemma by either distributing drink tickets to their guests or by letting guests take care of their own drink tabs.

Check out the possibilities
Make preliminary phone calls to restaurants, caterers or clubs that might work for your party. Though experts recommend starting early with holiday party plans, late planners often find they are first in line for cancellations on prime locations.

Think creatively; it might be easier and cheaper to host a company luncheon or brunch during the holidays. The holidays are also a great time to entertain at home.

Once you've narrowed down your choices to two or three possibilities, visit them. Visiting a site and talking with a caterer or event planner face to face will go a long way toward helping you make a decision. It should be easy to finalize your choice after talking to references from list of finalists. Finally, ask for a written estimate and review it for areas of negotiation.

As soon as you've selected a date, send out invitations to employees. Some companies include flyers or invitations with paychecks and e-mail is a fast and easy way to get the word out. Follow up by circulating sign-up sheets.

Activities make memories
Experts agree that activities, not food, make memories. So include activities in your party plans.

Perhaps different departments can perform skits. A friendly "name that tune" competition between different tables of guests might provide some fun. And drawings for door prizes are always a good idea.

If you're planning an off-site party, consider a venue that is an activitiy itself. The Enchanted Castle in Lombard, Ill., for example, offer rides and entertainment for the whole family -- or whole office. Or a specialty restaurant, such as Medieval Times that offers dinner and a jousting tournament at eight locations nationwide, could provide a festive setting for your office celebration.

Whether the party is in your home, an amusement center or a restaurant, it's important to be there to welcome your guests and answer any questions they may have when they arrive.

After the party is over, try to get feedback about the event. This information will be useful as you begin planning for next year.

-- Updated: Dec. 1, 2003

 

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See Also
How not to act at the office party
Business gifts spread cheer for workers and clients
Advance your career at the office party
Ways to boost employee morale
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