We all know that when we pay an employee in cash/wages, it is a taxable transaction to the employee. What is less commonly known is what should happen when something of value other than cash/wages is given. Gifts such as a Thanksgiving turkey, a $25 store gift card for a job well done, a Caribbean cruise vacation for meeting a sales quota, or even a Rolex watch for an employee’s twenty-year anniversary with the company all have different tax consequences. Sometimes the exact same gift given under two different situations may be taxed differently. This article will cover the…
