Thank you, Don. We are a small company under spending scruntiny; therefore, I was trying to find a way to stretch $50 for each employee. Thanks for the idea.
My handy little tax book from 1999 says that cash bonuses must be treated as income. However, if employers make a general distribution (for goodwill purposes) of small gifts, like turkeys, hams or other merchandise of nominal value, you don't have to treat it as income. My little book doesn't say how much, and it is a few years old. However, I remember this coming up at a job I had about 25 years ago and we were told then that the company could give us a gift with a value of up to $25 without it being considered income; cash would be income regardless of the amount. I imagine that if the rules haven't changed from the 70's to 99, that it is still probably the same.
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We are a small company under spending scruntiny; therefore, I was trying to find a way to stretch $50 for each employee. Thanks for the idea.
Good luck!