We can't give any tax advice, because tax laws vary by country, state, province, prefecture, municipality, and (sometimes) company type.
Always consult your company's finance department regarding tax decisions.
Most companies use our reporting tools to download a monthly or quarterly report of the rewards redeemed. The report can be sent to your finance department to use for compliance with any applicable tax laws.
You can view and download this information in the Reward Totals Report.
You can view the Reward Totals report for any date range. To download the report, click the 'Export to CSV' button near the top-center.
Although we can't give any tax advice, we can offer a few examples of how some companies have approached the question.
Some of our customers treat gift cards as taxable income. Others do not. Still others treat gift cards as non-taxable as long as the total amount earned is below a certain amount per year (e.g. not taxable as long as total gift cards earned are less than, say, $1000/year).
These are just examples. Your finance department will need to determine your specific course of action.
Donations and Taxes
Users receive a receipt via email for every donation they make through Bonusly.
Your finance department is going to need to determine how to approach this, but we’ve seen a few companies take the following position on Bonusly donations:
The donation is made by the company on behalf of their employee. Since the employee never receives any cash benefit, there is no tax deduction or liability for the employee. Under this view, the company (not the employee) may be eligible for a tax deduction for the donation.
This is just one approach that we have observed. It is not advice on how your company should treat donations. Your finance department will have to determine if this is the best option, or if another approach is necessary.
Have more questions? Reach us at firstname.lastname@example.org.