Gifting for the Holidays

As we are still full from Thanksgiving and preparing for the holiday season ahead, it is time to start thinking about giving back.

Per the IRS guidelines, any cash or cash equivalent bonuses to employees must go through payroll. That includes gift cards.  Any de minis gifts of less than $25 or items such as turkeys with no real cash value are allowed to be given to employees without adding the value onto their taxable income.

As we head into December, if you are planning to pay any bonuses to your employees, please let us know so we can run it through your payroll. We can run bonuses for you as either a net amount (what the check is actually written for) or a gross amount.

Gifts to customers and vendors are allowed as long as they are not flagrant. Gifts to not-for-profits (501c(3) organizations) are also allowed and deductible up to 50% of your income.

If you have any questions about bonuses or gifting this holiday season, please give us a call at SBS CPA Group.

Karena J. Sylvester, CPA


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