Cash-Equivalent Rewards

Christine M

We are considering offering Cash-Equivalent Awards, i.e., pre-paid Visa cards, in our employee reward and recognition program.

Is there a dollar level at which are these considered de minimus and not necessary to report as taxable income?

We are located in IL, OH, RI, PR, CT, PA, GA.

Thank you.

NaeNae55

If it looks and/or spends like cash, you have to treat it as cash. All cash is taxable, no matter how small. Sorry.


Good luck!

Nae

Down_the_Middle

De minimus is frequently determined by the individual auditor or investigator, but I've always used $100.00 as a rule-of-thumb and have never had any issues with that amount. I recently had a DOL auditor define de minimus as anything less than $150.00, so you have a ball park idea.