The tax implications of employee gift cards

Employers planning on giving away gift cards should remember that all gift cards should be treated as taxable income

Employers planning on giving gift cards should remember that the IRS regulations support treating all gift cards and gift certificates provided to an employee as taxable income. Although there may be limited situations when the value of a gift card or gift certificate could be excluded from an employee’s income, employers might want to take a conservative view and include the value of all gift cards in employee wages. We always recommend speaking with your company's accountant for specific guidelines pertaining to your business.

Want to learn more? Check out this article on our Must-Know Tax Rules for Employee Gift Cards.