Know the difference between gifts and compensation — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Know the difference between gifts and compensation

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in HR Management,Human Resources

When payments are made in return for goods or services, that payment should be considered income to the recipient, not a gift. For example, if you give a favorite employee a big check at Christmas, you might consider it a gift, but the IRS will likely consider it income. That could be true if the employee and owner were family. In one case, the IRS said payments to an owner's daughter (who was an employee) were for past services, not a gift.

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