Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable. A certificate that allows an employee to receive a …

Feb 15, 2021 · Let’s take a closer look at employee fringe benefits and the de minimis rule. We’re breaking down: The de minimis definition; Examples of de minimis fringe benefits; Examples of …

Some employers believe that gift cards are not taxable and qualify as excludable from income as a de minimis fringe benefit because they meet the example of “traditional birthday or holidays …

Apr 1, 2024 · De minimis fringe benefits under Sec. 132 (e) include almost any low-value property or service that is provided infrequently and would be administratively impracticable to track. An …

Dec 22, 2022 · In the past, employers could give employees cash or a cash equivalent gift such as a gift certificate for amounts less than $25 without any tax concern. These were known as …

Nov 25, 2024 · Although gifts are generally not taxable to the recipient, this general rule does not apply to gifts given by an employer to an employee (see, Section 102(c)(1) of the Internal …

Dec 15, 2022 · Section 132 of the Internal Revenue Code (the “Code”) and related Treasury Regulations establish many exceptions to the rule, including an exception for “de minimis” …

Feb 4, 2025 · Employers should document the type, frequency, and value of gifts to support their classification as de minimis. Proper records are crucial if the IRS reviews these classifications. …

Nov 17, 2016 · Examples of de minimis fringe beefits include the following: Traditional birthday and holiday gifts of property (not cash) with a low fair market value. Occasional cocktail …

Jul 13, 2023 · Discover how to navigate gift giving to employees and volunteers within tax laws. Learn about de minimis benefits and guidelines for compliance.