2007-10-02 15:11:42 · 7 answers · asked by Kevin D 1 in Business & Finance ➔ Taxes ➔ United States
Gifts to employees are tax deductable but they are also taxable to your employees (to the extent that they are easily convretable to cash). What this means is that the value of the gift needs to be included in the employee's gross pay and taxes withheld.
2007-10-02 15:18:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can deduct gifts of nominal value but not large ones that could be disguised compensation. A turkey at Thanksgiving or financing the company Christmas party is OK, $1,000 in cash would be taxable to the employee and subject to employment taxes to you.
2007-10-02 22:16:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In addition to what everyone else has told you. If a gift to an employee is cash or something that has cash value, such as a Walmart gift card. The value is included on the W2 as wages.
2007-10-02 22:46:15 · answer #3 · answered by Charlie & Angie G 4 · 0⤊ 0⤋
Any gift you give to your employees is considered part of your payroll. You must include the value in their gross income and collect and pay payroll taxes on them. They must pay income tax on them as part of their wages.
As such, the gifts are deductible as part of your payroll.
2007-10-02 23:05:05 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Minor things like a company jacket or Christmas party are business expenses. Cash like a Christmas bonus isn't even if it is only $5.
2007-10-02 22:17:37 · answer #5 · answered by shipwreck 7 · 0⤊ 0⤋
by calling them a taxable benefit (I'm sure your employees would understand)
2007-10-02 22:16:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋
YES BUT ONLY 25.00 FOR EACH GIFT EX IF YOU PAID 32.50 YOU CAN ONLY CLAIM 25.00CHECK WITH IRS TO BE SURE
2007-10-03 00:04:02 · answer #7 · answered by homemaker taking care of etc. 1 · 0⤊ 1⤋