You seem to have this notion that employees are asking for handouts. They aren't. They're saying, "Hey, I would like a $5k raise. I know you're planning on giving it to me anyway, but I wanted to point out that if you do it in the form of charitable matching, the company will only have to reduce its income by $4700 to give me that $5k raise, since the matching is tax-deductible."
The company essentially gets to offer me more money at no cost to them if they structure their compensation this way. You could be very transparent with this and simply allow employees to direct the company to put money into charity (with the tax going to the charity instead of the government) but it's probably easier for the accountants to simply do matching with a cap, which is why you see companies do it this way.
The company essentially gets to offer me more money at no cost to them if they structure their compensation this way. You could be very transparent with this and simply allow employees to direct the company to put money into charity (with the tax going to the charity instead of the government) but it's probably easier for the accountants to simply do matching with a cap, which is why you see companies do it this way.