Gift Cards for Specific Vendors
Hi All! My company is planning to start some kind of reward program and give out gift cards to employees. Everything I have ever read or been taught tells me that gift cards are taxable.
My Controller is telling me that she did research last year and found that as long as the gift card is to a specific vendor and not a Visa gift card that can be used anywhere, then the gift card would not be taxable. Her examples are gift cards to Restaurants and Honey Baked Ham.
Has anyone heard of this?