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Top Method CPA News

Tax Consequences of Employee Holiday Gifts

United States · United States

Tax Consequences of Employee Holiday Gifts

It is common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a fair market value so low that it is impractical and unreasonable to account for it, the gift’s value would be treated as a de minimis fringe benefit. As such, it would be tax-free to the employee, and its cost would be tax deductible by the employer. De Minimis Benefits – In general, a de minimis benefit is one that…See the Story

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