Kaizen Time

How an Employee Tool Reimbursement Program Benefits You and Your Team

Written by The Kaizen Team | | June 06, 2025
 

Attracting and retaining skilled employees is crucial for small business success—especially in industries where workers invest heavily in their own equipment, like automotive repair. One underused but powerful financial strategy? A tool reimbursement program.

In this episode, we dig into how a well-documented, IRS-compliant plan can help you stand out in a competitive hiring market. Done right, this kind of program offers a tax-free benefit to employees and a deductible expense for your business—a true win-win.

You’ll learn what it takes to build a legit accountable plan, how to stay compliant, and why it’s more than just a perk—it’s a smart retention tool. We also cover key accounting tips to help you avoid common mistakes and get the full benefit for your team and your bottom line.