Giving gift cards as Christmas present to your employees? Beware, not all gift cards are tax deductible!
Are you planning to give your employees a gift card this Christmas?
To be deductible the total given needs to be under $300 per employee and they cannot be classed as an entertainment type gift card/voucher!
What is classified as an entertainment gift card?
Entertainment gift cards are gift cards that supply recreational activities such as movie tickets, theatre/musical tickets, live music show tickets, sporting event tickets, club membership or can be used towards a holiday.
So remember, to be deductible they need to be ordinary gift cards which are redeemed for goods.
For more details on giving gifts to your employees and the tax implications, please click the following link to read our article https://www.crosscorp.com/let-the-festivies-begin-christmas-party-gifts/
Have a safe and Merry Christmas from the team @ CrossCorp