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.
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
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 [email protected].