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Gift Giving 101 - For Bosses, that is!

🎁 Starting to think about Holiday Gift-Giving? 


If your business gives out year-end gifts to employees, here is a quick guide to what counts as taxable income and what does not:


- Non-cash prizes: Include the fair market value in wages subject to FIT, FITW, FICA and FUTA

- Nontaxable gifts: Fruit baskets, hams, turkeys, wine, flowers and entertainment tickets to a show, sporting or other event (but not season tickets) generally are de minimis (nontaxable) fringes if given infrequently


- Taxable gifts: Cash or cash in kind (gift certificates) for any amount are wages subject to FIT, FITW, FICA, and FUTA.


➡️ So what does this mean? It means that a gift certificate for a turkey is taxable, but an actual turkey is not 🦃!


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