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Antiwork

Company gift, not supposed to be taxed, was taxed.

My Fortune 500 company gave a gift to the employees in a large department to be used for “Wellness” (basically anything that improves your state of mind; salon appt, evening out, exercise equipment, vacation spending, etc.) Nothing was excluded, and there was a set dollar maximum (same amount for each person). They had about 60 days to spend it. The people in the department have a range of salaries. To avoid being taxed, the employees were to pay for their purchase on corporate credit cards and expense it. Some employees bought gift cards for different stores and companies (not Visa gift cards) to be used in the future and only those people were taxed on their paychecks as income after the fact. The company won’t reimburse them. It didn’t impact me directly but I find it unethical because they weren’t told that store gift cards would be taxed, in fact,…


My Fortune 500 company gave a gift to the employees in a large department to be used for “Wellness” (basically anything that improves your state of mind; salon appt, evening out, exercise equipment, vacation spending, etc.) Nothing was excluded, and there was a set dollar maximum (same amount for each person). They had about 60 days to spend it. The people in the department have a range of salaries. To avoid being taxed, the employees were to pay for their purchase on corporate credit cards and expense it. Some employees bought gift cards for different stores and companies (not Visa gift cards) to be used in the future and only those people were taxed on their paychecks as income after the fact. The company won’t reimburse them. It didn’t impact me directly but I find it unethical because they weren’t told that store gift cards would be taxed, in fact, everyone was told they would NOT be taxed because it was a company purchase. Any thoughts on this?

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