A few reminders about end-of-year charitable gifts:
Deduction payments (i.e. charitable contributions)
Mailed payment postmarked by December 31st
Text message payment sent by December 31st
Credit Card payment charged by December 31st
PAY BY PHONE PAID by December 31st
Be careful here; it’s not the date you initiated it.It’s the date the bank cuts the check.
Cash and non-cash gifts to employees
Cash gifts to employees means that it is taxable to the employee
Non-cash gifts are also taxable to employees.The value of the “Christmas ham” should be included in their W-2’s.
A non-taxable, non-cash gift must be so small that it accounting for it is unreasonable.An example is giving an employee a company pen that was purchased in bulk for customers.
GIFT CARDS AND CERTIFICATES are cash gifts of which the value is immediately determinable and should be included as taxable compensation on the Form W-2.
Gifts to Volunteers
Be careful when gifting to volunteers. Cash, gift cards, and gift cards should be avoided. Once you give a person money, they are no longer volunteers. They quite possibly become employees, triggering payroll taxes, unemployment taxes, workman’s compensation insurance, and everything else that goes along with having employees.
From Church Law & Tax
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