SPIFF

SPIFF’s are, for all intents and purposes, ad hoc, short-term incentive programs used to focus the attention of sales reps. Often, SPIFF’s are used at the end of a quarter to drive revenue or to unload inventory before a new model is announced. While many companies use hard, cold cash as a reward for achievement, gift cards, merchandise and travel awards are also used. In all circumstances, there is a tax consequence to the recipient of these payouts.