Is there a taxable benefit?

Question 1

Does the item qualify as a valid gift or award?

A gift has to be for a special occasion such as a religious holiday, a birthday, a wedding, or the birth of a child.

An award has to be for an employment-related accomplishment such as outstanding service, employees' suggestions, or meeting or exceeding safety standards. It is recognition of an employee's overall contribution to the workplace, not recognition of job performance. Generally, a valid, non-taxable award has clearly defined criteria, a nomination and evaluation process, and a limited number of recipients.

A long-service award is an award you give to an employee in recognition of his or her years of service to your organization.

• Yes
• No

Date modified:

2015-12-10