This blog post is for my fellow Canadians… can I get an eh in here??? (Okay, I don’t say it that much either.)
So you’re an AWESOME employer. You da boss. And you have AWESOME employees that you couldn’t do it without. And it’s going to be Christmas soon! You want to spoil those hard working people with a small gift.
Can you write this off come tax time against your income?
Yep. You bet. You can claim 100% of client gifts against your income.
If you give a non cash gift it is deductible for you and non taxable for your employee given that it meets certain requirements. The requirement are that the gifts are under the $500/per year limit on gifts to employees and they must be for a special occasion such as a religious holiday, birthday, or wedding etc
Will your employee have to claim your gift on their income tax if you give them cash?
If you gift cash or near cash such as a gift card then the amount of the gift is deductible to you and needs to be included in your employee’s income.
So, you incredible boss you, feel free to GIVE!!!!
Here is a link to the CRA website that explains gifts and awards to employees.