🦃 Tax Tips for Turkeys! (Just keep reading, there's a method here really! 😉)
🎄 If your business gives out year-end gifts to employees, here is a quick guide to what is considered taxable income and what is not:
- Non-cash gifts: Include the fair market value in wages subject to FIT, FITW, FICA and FUTA
- Non-taxable gifts such as fruit baskets, hams, turkeys, wine, flowers and entertainment tickets to a show, sporting or other event (but not season tickets) are generally '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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