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Even better: Make it an employee discount of 50% off at Whole Foods for all Amazon employees, up to some monthly limit. If structured this way, would it even be
by CydeWeys 5y ago
Even better: Make it an employee discount of 50% off at Whole Foods for all Amazon employees, up to some monthly limit. If structured this way, would it even be taxable at all? I'm not aware of employee discounts being taxed.
- bzbarsky 5y agoIn the US tax handling of employee discounts at least on physical goods is as follows: if the discount brings the price paid below cost, then the below-cost subsidy is treated as income received by the employee. Concrete example: Company sells widgets for $12, of which $2 is profit. Then as long as the employee price is at least $10 there are no tax implications for the employees. If it were $9 they would owe tax on $1 per widget bought, etc. That said, some companies will pay the relevant taxes for you, or at least try to by guessing at your marginal rate...