Grossing up a gift card is a relatively easy process it s even easier if you have payroll software . Use the following steps to do a gross-up calculation Add up all the tax rates that apply to the gift card Turn the total tax rate into a decimal if you haven t done it already To account for this, employers can gross up the amount of the gift card using a percentage method. For example, if wanting to give an employee a $100 value, employers should include federal taxes, applicable state and local taxes, Social Security, and Medicare taxes in the amount of the gift card. The gift cards should be entered on the payroll in the pay period when the gift cards are distributed to the employees. Employers will often gross up the value of a gift card to avoid having employees face unintended tax consequences. NEW IRS ADVICE ON TAXABILITY OF GIFT CARDS BY MARILEE BASARABA, FSLG SPECIALIST PACIFIC Many employers give employees birthday or holiday gifts. These gifts take a variety of forms including a turkey, a ham, a gift basket, or a coupon to purchase a turkey or a ham at a local grocery store. For more information on Facebook advertising, see Facebook Marketing All-in-One For Dummies, 3rd Edition, by Andrea Vahl, John Haydon, and Jan Zimmerman Wiley , or visit advertising . For more about Facebook, in general, see Book 5 . What is the reason for this failure to codify experience? Is it that advertising does not attract inquiring minds? Is it that any kind of scientific method is beyond the grasp of creative people? Are they afraid that knowledge would impose some discipline on their work? Actually, the business-to-business opportunities for this technique are at least as compelling as the offerings for consumers. 15 . http digital social- media- accounts . Pin important posts