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Navigating Employee Appreciation: Gift Cards, Rewards, and Tax Implications
January 9, 2025
Q. We are interested to know what other companies do when giving gift cards as employee appreciation gifts. Do you have a vendor where managers can request and employees redeem cards? What is your experience with the vendor and how do you pay for the cards and report the gift card values to HR?
A.
(Answered by the IOFM Advisory Panel)
We do not give gift cards due to the tax and payroll challenges. As an organization, we use a reward system called "Awesome" that allows anyone to give reward…
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