Are gift cards taxable if boss buys them personally?

Position::HR Q&A
 
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Q. Is there a difference in the tax rules if employees use their own money to purchase gift cards to give to co-workers as Christmas gifts? A VP is asking about doing this, instead of buying gifts for her staff.

A. This is a tricky question, because gift cards are considered a cash equivalent and, therefore, are fully taxable. However, if the VP is...

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