Employee Holiday Gifts May Be Taxable

John F. Coggin, CPA MBAPrincipal, John F. Coggin CPA, PLLC

It is common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a fair market value so low that it is impractical and unreasonable to account for it, the gift’s value would be treated as a de minimis fringe benefit. As such, it would be tax-free to the employee, and its cost would be tax deductible by the employer.

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