TAXATION OF GIFTS, PRIZES AND AWARDS TO EMPLOYEES ...
TAXATION OF GIFTS, PRIZES AND AWARDS TO EMPLOYEES ...
TAXATION OF GIFTS, PRIZES AND AWARDS TO EMPLOYEES ...
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<strong>TAXATION</strong> <strong>OF</strong> <strong>GIFTS</strong>, <strong>PRIZES</strong> <strong>AND</strong> <strong>AWARDS</strong> <strong>TO</strong> <strong>EMPLOYEES</strong>Non-cashItemA gift of property such as a plaque, tickets for a sporting or cultural event,electronic equipment, T-shirts, flowers, etc. Gift certificates are treated thesame way as cash for tax purposes.De Minimis A non-cash gift or award that is so small that accounting for it would beunreasonable or administratively impractical. De minimis gifts, prizes orawards may only be provided on an occasional basis and must be small inamount. Only non-cash gifts of property valued up to $100 are consideredde minimis. Cash awards, gift cards and gift certificates are neverconsidered de minimis.Related InformationInternal Revenue Code §74(c) – Exception for Certain Employee Achievement AwardsInternal Revenue Code §132(e) - De Minimis FringeInternal Revenue Code §274(j) – Employee Achievement AwardsAppendicesAppendix AProcessing Gifts, Prizes and Awards to EmployeesWho Approved This PolicyLouis H. Katz, Executive Vice President and TreasurerBeth Nolan, Senior Vice President and General CounselHistory/Revision DatesOrigination Date: September 2003Last Amended Date: July 25, 2007Next Review Date: December 31, 20144
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