This is the time of year when many employers give deserving employees a reward for a job well done. For FICA and income tax withholding purposes, wages don’t include gifts that are classified as de minimis fringe benefits. Tax-free de minimis fringes are benefits provided by employers that are offered infrequently and have a fair market value so small that it is impractical and unreasonable to account for them. The following are treated as de minimis fringes:
