Will we have to pay payroll taxes on rewards?
As with any tax matter, you should consult with a tax expert to determine if a reward someone gets is subject to payroll taxes.
For companies with US employees, you'll likely need to pay payroll taxes if the reward is monetary and could be viewed as compensation by the Internal Revenue Service. Individual rewards like gift cards are an excellent example of a reward subject to payroll taxes.
If you are doing monetary rewards for people, you can export all your redemption data at year-end to calculate the total value of rewards someone receives. Typically, that's handed off to your accounting team so they can calculate and pay the taxes owed.
You don't want to dock someone's pay for the amount of taxes owed on rewards. The best practice is to gross up taxes owed so the employee isn't on the hook for additional taxes.
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