I heard at an AP seminar that gift cards are considered wages to the employee and should be reported on the W-2. IRS Publication 15-B talks about a qualified plan vs. a non-qualified plan. Can you define?


In the context of employee reimbursement, a qualified plan refers to a written plan for awards that does not discriminate in favor of highly compensated employees (those holding 5% or more interest in the company, or compensated more than $115,000 annually).

See IRS Pub 15a, page 12, and IRS Pub 535, page 7.

Have more questions? Submit a request