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Taxes on Awards

HRMGRHRMGR 1 Post
in Compensation Vote Up0Vote Down
Does anyone know where can I find information on the maximum amount you can award in non-monetary awards/incentives without withholding taxes? Or is there a maximum? Is it per award, or per year? I've heard from some that it is somewhere in the $500-600 range per year, but I know others than tax on gifts worth much less. My understanding is that if you award cash, you always have to tax...but if you awards gift cards or something non-monetary, there is a cap. Any clarification would be appreciated, or links to some websites where I can look for myself. Thank you!!
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  • CapCap 5 Posts
    PMVote Up0Vote Down
    IRS code 132 explains the de minimis benefits. Basicly must be small in value and provided infrequently. No dollar max is given. Examples: birthday, service & holiday gifts OK if small like flowers, books, fruit, etc. Tickets to show or sporting event OK, but season tickets not OK (too expensive), personal use of company car once a month OK, but more frequent use not OK. If gift has company logo printed on it, it's value becomes almost nothing (don't tell your boss that). Large expenses like dues at country club, or weekend at employer-owned facility (hunting lodge, boat, apartment)not OK. Good luck!
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