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. We make sure to give you everything they'll need. 👍
Regardless of what type of organization you're a part of, or where your teams are located, it's easy to download a monthly or quarterly report of your employee's redeemed rewards from Bonusly.
The report can be sent to your finance department to use for compliance with any applicable tax laws. This report is called the Rewards Totals Report and we strive to make it as straight forward as can be. One of the ways we ensure this is by offering the ability to identify users in our reporting by their employee payroll ID! 🎉
The Reward Totals Report
You can find, view and download the Reward Totals Report from Rewards > Totals.
The Reward Totals report can be customized for any date range to fit your needs. Once your time frame is set, you just click the 'Export to CSV' button near the top-center in order to download the report.
You're also able to filter the report by "location", which may be especially useful for international teams.
Common Examples
Although we can't give any tax advice, we can offer a few examples of how some companies who use Bonusly 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
Default donations in the Bonusly Reward Catalog are automatically fulfilled upon redemption. Users will receive an email confirmation and can review all reward redemptions on the Redemption History Page.
Donations are paid for by the company to Bonusly's third party gift card partners on behalf of the employee (user) with no money transferred directly to employees. Because there is no cash benefit or money given to employees who redeem for a donation, they are not available for tax deductions.
No personal or company information is shared with the charity/organization
No formal tax documentation is prepared
Donations are not deductible for the company or employee
Custom rewards for donations to charities are a different story because those are managed solely by your company. So any tax questions would go to your finance team/tax professionals and the organization you are donating to.
Questions? Send us a note to [email protected]; we'd be happy to help!
Was this article helpful? Let us know by rating it below with an emoji and sharing your feedback!
