Bean Counter Bookkeeping

Are you thinking of showing your employees how much they mean to you and your business?  But then decide not to because of the hassle of those pesky taxes? 

According to Publication 15b from the IRS it is allright to show a random act of kindness once in a while.   According to the IRS you can give a De Minimus benefit to an employee and exclude it from their employee wages and have it be a tax deduction.  The catch?  The gift has to be of so little value that it would be too much work for you sweet bookkeeper to track.  Here are some examples:

• Holiday Gift, other than cash, with a low fair market value
• A meal here and there (go ahead - treat them to lunch)
• Occasional parties or picnics
• Occasional tickets to theater or sporting events.

Hope that gets your creative gift giving juices flowing and show those employees how great they are!

P.S.  If you choose to go the Gift Card route keep it under $25 and you will be good to go.