Gifting employees is a wonderful way to show appreciation, but it comes with tax implications that many companies overlook. Here’s what you need to know to ensure your employee gifting program stays compliant with tax regulations.

1. Understand the IRS Limits:
   The IRS has strict rules around employee gifts. For example, gifts valued over $25 may be considered taxable. By sticking to smaller but thoughtful items like branded mugs, custom notebooks, or tech accessories, you can stay within limits while still making an impact.

2. Non-Cash Gifts Are Usually Safer:
   Non-cash gifts like desk accessories or sustainability-focused items (e.g., reusable bags, eco-friendly food containers) often fall into a safer category from a tax perspective, making them great options to consider.

3. Check for Exceptions for Certain Occasions:
   Occasional, infrequent gifts like holiday gifts or milestone recognition might not be taxable if they fall under the de minimis fringe benefits rule. Gifts like gourmet food baskets or personalized office supplies can fit this bill while staying tax-efficient.

4. Track Your Gifts:
   Keeping detailed records of the items you give, their value, and the reasons behind the gifting will help you stay compliant. This is especially important for larger items like high-end branded jackets or solo stoves.

Navigating tax compliance in employee gifting can be tricky, but by staying informed and choosing gifts within the proper guidelines, you can show your appreciation without running into trouble with the IRS.