WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby Attracting Workers Affordably Whether as a result of a booming economy, tighter immigration laws, or an educational system gone astray, finding qual ified job appl icants has become increasingly more difficult for those in the drilling industry. Even more troubling for many smaller businesses is the ques- tion of how they can compete for badly-needed, qualified workers. Surprisingly, survey after survey shows it is not money alone which attracts new workers and keeps existing employ- ees on the job. It is the benefits. In fact, currently treasured by job seekers - and employees - are flexibility and the opportu- nity to balance work with other life responsibilities, interests, and issues. Obviously, no drilling operation can be an employer of choice without a good benefits package. Job training, educa- tional assistance, and employer-provided vehicles are among the common working-condition fringe benefits. While many fringe benefits are included in an employees’ taxable wages, other fringe benefits aren’t and, yet, remain deductible by the employer. Among these exceptions are non- taxable fringe benefits such as health insurance, medical expense reimbursements, dental insurance, education assis- tance, and day-care assistance. Yes, tax-qualified benefits are deductible by employers and totally free of federal and state income taxes for recipients. Although tax savings obviously make fringe benefits an attraction, thanks to last December’s Tax Cuts and Jobs Act, the array of tax-free fringe benefits employers can provide is not quite as generous as it used to be. The law restricted an employer’s ability to deduct many common business expens- es - such as meals, entertainment, and employee moving expense reimbursements. On the upside, the law also includ- ed a new tax credit for employers who provide paid family and medical leave for their employees. A drilling operation offering a happy workplace is often an attraction for job seekers. Whether it’s a nightclub affair or a buffet in the business’s break room, parties are a tried-and- true benefit. The tax rules allow a business to throw a holiday party - even a relatively fancy one - with no tax consequences to the employees. Of course, to be deductible, the Internal Revenue Service requires the party cost to be “reasonable,” and not “lavish or extravagant.” To attract talented individuals to work for the drilling oper- ation or business, as well as to retain qualified employees, today’s employer must offer fringe benefits and other perks. Wouldn't it be ironic if those benefits turned out to be the ones which cost your operation the least? Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com 24 SEPTEMBER 2018 WorldWide Drilling Resource ®