Skip to content
Bookkeeping, payroll & tax for owners
← Learning center

Video Tips: Tax Consequences of Employee Holiday Gifts

Published December 8, 2025

It is a common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a low fair market value, it would be treated as a de minimis fringe benefit. As such, it would be tax-free to the employee, and its cost is tax-deductible by the employer.

Get started

Find out where you stand.

Tell us how the business is set up and what's currently a mess. We'll tell you what we'd do first, and what it would cost.

Please don't send Social Security numbers or tax documents through this form.

Call UsGet Started