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Planning Guidelines for Employers Giving Gifts to Employees
Littler 
[Guidance Overview] Dec. 2, 2008
Excerpt: Unfortunately, gifts that employers give to their employees are generally treated as supplemental wages, and thus subject to both payroll and income taxes. This means that the value of the gift must be included in the employee's W-2 at year end and included in a payroll period for purposes of income tax withholding and payroll taxes.'
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