Are Holiday Gifts from Employers Taxable?
Many employers might be in the giving spirit this holiday season, especially as many companies might be trying to retain workers who might quit in the Great Resignation. However, employers should also consider possible tax implications of giving employees certain types of holiday gifts or bonuses. The IRS considers all compensation to be taxable, including fringe benefits that are more than a de minimis expense to the company. If employers are handing out cash or an equivalent - such as a Visa gift card or another general use voucher - it should be taxed as part of the employee’s compensation. It gets murkier when it comes to other gifts or perks handed out during the holiday season, however. Some fringe benefits that might be considered taxable compensation include: Season sporting…