BHT&D Certified Public Accountants Blog

Will My Gift To My Employees Be Subject To Payroll Taxes?

Posted by Lori Shepard on Tue, Dec 05, 2017 @ 03:00 PM

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: 

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Tags: Business Tax, Payroll Tax, Small Business, Gifts