2 ms·
Setting aside the gift card bit (addressed in above comment), $13k sounds way too high. Like two orders of magnitude too high. From irs.gov > Whether an item
by dmoy 5y ago
Setting aside the gift card bit (addressed in above comment), $13k sounds way too high. Like two orders of magnitude too high.
From irs.gov
> Whether an item or service is de minimis depends on all the facts and circumstances. In addition, if a benefit is too large to be considered de minimis, the entire value of the benefit is taxable to the employee, not just the excess over a designated de minimis amount. The IRS has ruled previously in a particular case that items with a value exceeding $100 could not be considered de minimis, even under unusual circumstances.
Which about matches with what I've seen at BigCo.
$40 box of tools as a gift? Did not show up on my paycheck.
$150 electronic device as a gift? Showed up on my paycheck.
- mikeyouse 5y agoThere's another about other fringe benefits being taxed - with a prime example being tech cafeterias. https://taxnews.ey.com/news/2019-0493-employer-must-substantiate-necessity-of-employer-provided-meals-for-value-to-be-excluded-from-employee-income-irs-tam-emphasizes https://taxnews.ey.com/news/2019-0493-employer-must-substant... In the past few years, guidance has shifted toward accounting for employer-provided food with employee income as well.
- dmoy 5y agoI don't think that's actually enforced yet though. I would bet the IRS wins that particular fight, but it'll take awhile.