Personalized Employee Appreciation Gifts & Corporate Swag Items for Staff

Employee appreciation gifts are generally taxable and need to be included on your tax forms at the end of the year, although there are a few exceptions. If you're planning to give a gift to an employee, you should know that it may be considered taxable compensation.

Unfortunately, the IRS doesn't consider most gifts to be de minimis fringe benefits, which means they're liable to taxation. The Internal Revenue Code (IRC) Section 102c states that gifts from an employer to an employee aren’t excluded from the employee’s gross income.

In simpler terms, this means that most gifts you give to employees will be considered taxable income, and the employee will have to pay taxes on the value of the gift. However, there are some exceptions to this rule. For example, holiday gifts or gifts with a low fair market value, like a gift card with a low value, may be considered de minimis and exempt from taxation.

Bosses should give gifts to their employees to show appreciation for their hard work and boost company morale, especially for important holidays. However, employees aren’t expected to give gifts to bosses and supervisors. The rule plays into the chain of command and office power dynamics, so while gift-giving may flow downward, it rarely flows upward.

When a boss is looking for great gifts to get their employees, they should consider the interests and hobbies of the recipients. Some examples that employees tend to love include hats, blankets, water bottles, desk plants, and mugs. Gifts can be branded with company logos to show team unity and spirit.

When it comes to holiday gifts, employees want to receive thoughtful yet purposeful gifts that they can put to good use. The gifts you choose depend on your employees, but they could be anything from delicious food items to fun branded company merchandise to gift cards for restaurants or services.

When the holidays roll around, it’s an excellent time to show your appreciation for your employees, and gifts can be a great way to boost morale and strengthen these relationships. Here are a few gifts many employees enjoy around the holidays:

• High-quality sweets or baked goods: Delectable sweets, baked goods, and other foods are often appreciated by the receiver. Some bakeries and confectionaries even offer little gift boxes, so choose a packaged box as a gift to show your appreciation.
• Gift cards: A gift or prepaid card is an ideal way to communicate heartfelt thanks for your employee’s work over the year. Choose a gift card to your employee’s favorite store or restaurant, or keep it simple with a generic prepaid card that they can use for anything they’d like to purchase.
• Bonuses: It’s hard to beat a well-earned bonus when the holidays roll around. They’re a great way to show appreciation when you’re unsure of the best gift to give.
• Concert tickets: If your employees appreciate one particular band or artist, show your appreciation by gifting them a pair of tickets to see the show with a loved one.
• Gift baskets: Baskets filled with hand-selected items go a long way in showing your gratitude for your employee’s hard work. Choose things you think the employee might like, such as blankets, chocolates, coffee samplers, or apparel. You can even get these items customized with your company’s logo.

To recognize your employees for working hard or accomplishing goals, you should choose thoughtful gifts that make them feel appreciated and motivated. These will vary depending on the interests of your employees, but great options include gift cards, items related to their hobbies, interesting books, massage certificates, office awards, and complimentary lunches.

Recognizing your employees for their contributions to the workplace helps bolster morale, improve engagement, and minimize attrition. Here are a few great ways to recognize your employees:

• Surprise lunch or treats: A surprise lunch or sweet treats during the workday can be an excellent way to recognize your employees’ hard work and dedication to the job. Bonus: Pick your employees’ favorite restaurant or bakery to supply the delicious food.
• Celebrate birthdays: Note your employees’ birthdays throughout the year, as this is an excellent way to recognize them for their contributions. Gift them a sweet treat and a small gift to communicate your appreciation.
• Public recognition: It’s nice to be recognized for your efforts, so show appreciation for your employees’ work through public recognition. You could verbally announce your gratitude in the workplace, acknowledge them on social media, or something similar.
• Host a wellness day: Recognize your employees and show appreciation by hosting a wellness day or retreat. This could be a spa day, hiring an in-house massage therapist, or providing a gym membership.