The Christmas season is nearly upon us. That means it’s time to start thinking about what you’re getting your employees for the holidays. And we’re not simply talking about a holiday bonus.
Figuring out what to give staff as a gift can be immensely challenging. You need to make sure it’s something people will enjoy and actually use. More importantly, you need to account for the tax ramifications.
As noted by the Wagepoint blog, any gifts you give as an employer are subject to income tax. This is because gifts are generally seen as fringe benefits. The exception to this rule is gifts that qualify as de minimis, which means they’re too trivial to be taxed.
The following are considered de minimis gifts.
- Birthday or holiday gifts with a “low market value.”
- Occasional personal use of office equipment.
- Occasional special events, such as cocktail parties, tickets to a concert, etc.
- Occasional food.
- Special circumstances such as illness, loss, or exceptionalism.
As for what constitutes a low market value, that’s something of a gray area. The general rule is that you shouldn’t be spending more than $500 per employee per year. Cash rewards, as well, are a bad idea.
Why Give Employees a Holiday Gift at All?
Your people are the lifeblood of your business. You need to make sure that they feel invested in your business. They should work hard not because they need to as part of their job, but because they want to help you succeed.
Gift-giving on special occasions is an excellent way to make that happen. Not only do gifts allow you to show your appreciation to your people for making your business a success, but they also demonstrate that you care about them as more than a resource. Moreover, in the case of customized or personalized gifts, they can even help you gain a deeper understanding of your people.
The Case for Embroidered Apparel
Now that we’ve made a case for giving gifts as a general concept let’s discuss embroidered apparel specifically. What is it that makes an embroidered article of clothing a better option than other gifts? As it turns out, there are a few answers to that question.
- Embroidered apparel is relatively inexpensive. As already mentioned, you’re limited in terms of how much you can spend on each employee every year. An embroidered shirt or hat isn’t likely to cost you more than $30 or $40 — meaning it’s easy to stay within your price limits while giving a more upscale gift.
- Embroidered apparel is simple to order. Generally speaking, the process of designing and ordering custom embroidery shouldn’t be complicated or overwhelming.
- Embroidered apparel is easy to personalize. Whether you want to provide each employee with a custom shirt or allow them to design their own logos, custom embroidery presents an easy solution for any employer that’s struggling to come up with a personalized gift.
- There are other options beyond embroidered apparel. Many businesses that offer custom embroidery do more than just apparel. They may also offer personalized products such as tote bags, hats, coffee mugs, and more. That means you have plenty of options if you — or an employee — decide that embroidery isn’t the right choice.
It’s a season of generosity and gift-giving. As an employer, that means it’s the perfect time to thank your people. To show them that you appreciate all the hard work they’ve done in getting you where you are today.
Personalized embroidery is an excellent way to achieve this. And that’s precisely where BlueCotton comes in. Working with us, all you need to do is choose a shirt, pick your color and size, then open our award-winning embroidery design studio.
From there, it’s easy to customize your order in whatever way you see fit. You can even add multiple different types of shirts to the same order without too much of a price increase. That’s not even the best part.