Yes, you can give employee gift cards as a non-taxable, non-reportable benefit as long as they meet certain criteria. Specifically, the gift card must be in a denomination of $25 or less, and it must be given infrequently, such as on a holiday or for a special occasion. Additionally, the gift card must be for a general use, such as a gift card to a department store or a gift card for a specific brand, rather than a specific item. If the gift card exceeds $25, it would be considered as additional income for the employee and would be subject to taxes and be reported on payroll.
Some examples of gift cards that can be given to an employee include:
- A gift card to a popular restaurant or coffee shop
- A gift card to a department store or clothing retailer
- A gift card to a home improvement or electronics store
- A gift card to a spa or fitness center
- A gift card to a bookstore or entertainment retailer
- A gift card to a subscription service such as Netflix or Amazon Prime
It is important to note that some companies offer their own gift cards that can be used within the organization.