u/GIFQcom

Sharing a breakdown we put together on how the IRS treats gift cards given to employees, contractors, and customers in 2026 - specifically the de minimis fringe benefit rules, the cash-equivalent treatment, payroll tax implications, and the 1099 thresholds for non-employees.

Curious how others here are handling year-end reconciliation for client/employee gift card programs — particularly around the timing of when the income is recognized vs. when the card is redeemed. The IRS guidance hasn't fully caught up to digital delivery and partial-balance cards.