Employer refuses to put holiday gift on W-2

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MP64
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Employer refuses to put holiday gift on W-2

Post by MP64 »

I'm a full-time employee at a small engineering company. I receive a W-2 each year with my wages in Box 1. In 2019, everyone received a check for a few hundred dollars which the company called a "holiday gift". The check has the name of the company's payroll account on it. When I received my W-2 a couple of weeks ago, this amount was not included in Box 1.

I brought this up with the HR person and they said that it doesn't need to be on the W-2 and that it falls under the required amount to issue a 1099, so I should just report it as "other income" on my taxes.

I read a lot of IRS documents, like Pub 15, Pub 15-B, and instructions for Forms W-2, 1099-MISC, and 8919, and everything seems to suggest that any cash-equivalent bonus or gift to employees should be on the W-2.

I went back to HR with this and they said that I was wrong and they don't need to do anything and I should just report it under "other income".

Who is correct here? I still feel like I'm correct based on everything I've read, but it's hard when you're going up against someone who's supposedly a professional in this stuff. It also makes me feel guilty for making a fuss over a gift.

It looks like if I'm correct I would have to file Form 8919, but that form explicitly states cases where you receive both a W-2 and a 1099-MISC. Can I still file Form 8919 even though I didn't get a 1099-MISC since the amount was under $600?
Gill
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

Why are you worrying so much about this? Treat it the same as if the company give you a case of Scotch.
Gill
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WildCat48
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Re: Employer refuses to put holiday gift on W-2

Post by WildCat48 »

I agree with Gil above, nothing to worry about.
Big Dog
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Re: Employer refuses to put holiday gift on W-2

Post by Big Dog »

you are correct, any cash gift over $75 is supposed to be included on your W2. But since it is not and HR refuses to issue Amended W2's, you have two choices: 1) add it to Other Income; 2) ignore it.
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eye.surgeon
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Re: Employer refuses to put holiday gift on W-2

Post by eye.surgeon »

MP64 wrote: Tue Feb 11, 2020 11:45 am
Who is correct here? I still feel like I'm correct based on everything I've read, but it's hard when you're going up against someone who's supposedly a professional in this stuff. It also makes me feel guilty for making a fuss over a gift.
Your conscience is right, you are making a fuss over a gift. Do you report your birthday gifts as 1099 income on your taxes? It was a gift, don't worry about it.
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123
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Re: Employer refuses to put holiday gift on W-2

Post by 123 »

You are 100% correct that the gift should be included in W-2 wages but you will get nowhere complaining about it to your company. They don't want to include it as W-2 wages because it could potentially increase various employer paid taxes (plus to pay you an "even" amount they would have to gross it up for various taxes withheld from the employee payment).

Yes it raises a lot of issues. If you look at it as a personal gift from the employer, in spite of tax regulations, that's the easiest way of dealing with it.

If it really makes you uncomfortable the practical way of dealing with it is to avoid the issue in the future by seeking an alternative employer.
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keystone
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Re: Employer refuses to put holiday gift on W-2

Post by keystone »

Big Dog wrote: Tue Feb 11, 2020 11:56 am you are correct, any cash gift over $75 is supposed to be included on your W2. But since it is not and HR refuses to issue Amended W2's, you have two choices: 1) add it to Other Income; 2) ignore it.
My understanding is that a cash gift of any amount is supposed to be included on the W-2. Whether that is done in reality is a different story.
Last edited by keystone on Tue Feb 11, 2020 12:04 pm, edited 1 time in total.
seymore92
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Re: Employer refuses to put holiday gift on W-2

Post by seymore92 »

Big Dog wrote: Tue Feb 11, 2020 11:56 am you are correct, any cash gift over $75 is supposed to be included on your W2. But since it is not and HR refuses to issue Amended W2's, you have two choices: 1) add it to Other Income; 2) ignore it.
Isn't option 2: "ignoring it" illegal? Aren't the legal options to either add it to Other income or to have the employer issue a corrected W2?
seymore92
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Re: Employer refuses to put holiday gift on W-2

Post by seymore92 »

eye.surgeon wrote: Tue Feb 11, 2020 11:57 am
MP64 wrote: Tue Feb 11, 2020 11:45 am
Who is correct here? I still feel like I'm correct based on everything I've read, but it's hard when you're going up against someone who's supposedly a professional in this stuff. It also makes me feel guilty for making a fuss over a gift.
Your conscience is right, you are making a fuss over a gift. Do you report your birthday gifts as 1099 income on your taxes? It was a gift, don't worry about it.
I don't believe this is an accurate analogy - isn't it true that there is no requirement to report (birthday) gift income, but there is a requirement to report employer gift income?
Bobby206
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Re: Employer refuses to put holiday gift on W-2

Post by Bobby206 »

I am in the ignore it camp. I get a W2 and I pay taxes on that. I don't see if my employer made a mistake. If they did I imagine the IRS would be friendly to an employer mistake. I'd forget about it and move on.

Good of you for being so conscientious but I'd ignore.
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Tamarind
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Re: Employer refuses to put holiday gift on W-2

Post by Tamarind »

OP, you are right. It should go on the W2 and your employer should pay tax on it. I have received W2s reflecting amounts for in kind gifts as small as $25, and even small private companies often structure programs like sales spiffs to maintain compliance with the rules.

But your options at this point are limited to taking it further up the chain and/or reporting your employer to the IRS. Think carefully and perhaps seek the advice of an employment lawyer before you take that step. An employer that will attempt to dodge their tax obligations on such a small amount may also be unwise enough to retaliate against an employee who reports that behavior. Being right and being happy with the resulting outcome are not necessarily the same.
123
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Re: Employer refuses to put holiday gift on W-2

Post by 123 »

If you want to make a formal issue of it there are at least two mechanisms available to you. You could simply report the additional wages on your tax return as earned income and include a note to the IRS with the return that the additional compensation was not included on your formal W-2 from the same employer. Maybe the IRS will care, maybe not. Another is to contact your state labor commission/board since one of their missions is usually to ensure that employees are compensated correctly, including recognition of their earnings for state income tax (if applicable) and the payment of unemployment tax by the employer. Most regulatory agencies can appreciate that even if a particular issue does directly impact an individual employee (because their compensation is over the max for certain employer taxes) there will likely be other employees where there is tax collection potential.

Neither of these alternative involves any immediate interaction with your employer's HR/payroll department, but that could come later.
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Tdubs
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Re: Employer refuses to put holiday gift on W-2

Post by Tdubs »

You are absolutely right about the W-2, but do you want everyone at your company to hate you?
rkhusky
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Re: Employer refuses to put holiday gift on W-2

Post by rkhusky »

If you like your job, report it as other income. If not, report it in such a way that your company gets in trouble.

Incidentally, I created a payroll spreadsheet for my parents’ small business. As part of that, I created a “bonus” module that calculated the gross pay necessary to make the net come out to a specified even amount.
thx1138
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Re: Employer refuses to put holiday gift on W-2

Post by thx1138 »

This sounds like you are trying to pay a vanishingly small amount of SS and Medicare tax on a gift of less than $600?

If it was me I’d do myself, my employer and the poor overworked folks at the IRS a favor by reporting it as “other income” just like HR erroneously told you to. Uncle Sugar and your state will get the vast majority they are due.

Otherwise appears form 4852 is for W-2 forms you think are wrong but can’t get changed by your employer. Or as you said maybe 8919 even though you don’t have a 1099 either.
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whodidntante
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Re: Employer refuses to put holiday gift on W-2

Post by whodidntante »

Why would HR know anything about this?
Goal33
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Re: Employer refuses to put holiday gift on W-2

Post by Goal33 »

next year's post:

"employer gave everybody a holiday gift except me"
keystone
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Re: Employer refuses to put holiday gift on W-2

Post by keystone »

whodidntante wrote: Tue Feb 11, 2020 2:03 pm Why would HR know anything about this?
In some organizations, HR is responsible for the processing of payroll.
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whodidntante
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Re: Employer refuses to put holiday gift on W-2

Post by whodidntante »

keystone wrote: Tue Feb 11, 2020 2:09 pm
whodidntante wrote: Tue Feb 11, 2020 2:03 pm Why would HR know anything about this?
In some organizations, HR is responsible for the processing of payroll.
That's terrifying. :happy
keystone
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Re: Employer refuses to put holiday gift on W-2

Post by keystone »

whodidntante wrote: Tue Feb 11, 2020 2:09 pm
keystone wrote: Tue Feb 11, 2020 2:09 pm
whodidntante wrote: Tue Feb 11, 2020 2:03 pm Why would HR know anything about this?
In some organizations, HR is responsible for the processing of payroll.
That's terrifying. :happy
As an accountant who has worked closely with HR on payroll, I concur!
Mr. Rumples
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Re: Employer refuses to put holiday gift on W-2

Post by Mr. Rumples »

I would send an email, to the person involved and say:

"As a follow-up to our discussion, its my understanding from you that the bonus doesn't need to be on the W-2 and that it falls under the required amount to issue a 1099 and that it should be reported to the IRS as other income. If this is incorrect, please let me know."

Send it, make a record of it and if you can, their receipt of it, and then forget it and report the money elsewhere.
robphoto
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Re: Employer refuses to put holiday gift on W-2

Post by robphoto »

I strongly agree with the people who say report it as other income and don't do anything else. If you send a formal letter to the company, they'll just be annoyed that you're kicking up a fuss. You'll be paying tax on it, seems close enough, let it go!
MnD
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Re: Employer refuses to put holiday gift on W-2

Post by MnD »

When I get an employer bonus/gift I always make sure to thank (if practical) whoever was the decider on the payment and make mention of something worthwhile I'll be using the funds for. In my experience less than 20% of employees acknowledge or thank their employer for optional additional compensation or gifts.

If the employer was supposed to include the income on the W-2 then I'd assume they put it on on the W-2 and move on with life. Do you take numerous entries from every pay stub and put them in a spreadsheet to be sure all the number totals match on your W-2? I don't.

I most certainly wouldn't pester payroll multiples times opining they are doing their job incorrectly and I also wouldn't escalate/document it any way further with my employer if payroll came back with a response not to my agreement. Talk about looking a gift horse in the mouth......
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Nate79
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Re: Employer refuses to put holiday gift on W-2

Post by Nate79 »

Would you rather your company give no gifts? Report it as other income or forget about it.
Ocean77
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Re: Employer refuses to put holiday gift on W-2

Post by Ocean77 »

If you report it as other income, you're off the hook. The rest is between your employer and the IRS. Nothing good will come from you getting involved.
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Re: Employer refuses to put holiday gift on W-2

Post by Stinky »

Ocean77 wrote: Tue Feb 11, 2020 4:02 pm If you report it as other income, you're off the hook. The rest is between your employer and the IRS. Nothing good will come from you getting involved.
+1
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EddyB
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Re: Employer refuses to put holiday gift on W-2

Post by EddyB »

seymore92 wrote: Tue Feb 11, 2020 12:06 pm
eye.surgeon wrote: Tue Feb 11, 2020 11:57 am
MP64 wrote: Tue Feb 11, 2020 11:45 am
Who is correct here? I still feel like I'm correct based on everything I've read, but it's hard when you're going up against someone who's supposedly a professional in this stuff. It also makes me feel guilty for making a fuss over a gift.
Your conscience is right, you are making a fuss over a gift. Do you report your birthday gifts as 1099 income on your taxes? It was a gift, don't worry about it.
I don't believe this is an accurate analogy - isn't it true that there is no requirement to report (birthday) gift income, but there is a requirement to report employer gift income?
One is a gift, one isn't.
UpperNwGuy
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Re: Employer refuses to put holiday gift on W-2

Post by UpperNwGuy »

Mr. Rumples wrote: Tue Feb 11, 2020 2:41 pm I would send an email, to the person involved and say:

"As a follow-up to our discussion, its my understanding from you that the bonus doesn't need to be on the W-2 and that it falls under the required amount to issue a 1099 and that it should be reported to the IRS as other income. If this is incorrect, please let me know."

Send it, make a record of it and if you can, their receipt of it, and then forget it and report the money elsewhere.
I would NOT send such an email. Just fill out your tax forms as accurately as you can, and stop communicating with your employer.
Unladen_Swallow
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Re: Employer refuses to put holiday gift on W-2

Post by Unladen_Swallow »

OP,

First figure out what you're trying to achieve with all this back and forth.

1. Are you afraid you will be in IRS trouble by not accurately reporting income? Then do it. Report it under Other Income. Or talk to an H&R block person and ask them how to report it.

2. Are you trying to win an unnecessary fight with your company about who knows more about IRS code?

3. Are you trying to get your employer in any potential hot water.


Your answer is your own business. But once you figure out which of the 3 you are trying to achieve, you can proceed accordingly.
"I think it's much more interesting to live not knowing than to have answers which might be wrong." - Richard Feynman
student
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Re: Employer refuses to put holiday gift on W-2

Post by student »

Mr. Rumples wrote: Tue Feb 11, 2020 2:41 pm I would send an email, to the person involved and say:

"As a follow-up to our discussion, its my understanding from you that the bonus doesn't need to be on the W-2 and that it falls under the required amount to issue a 1099 and that it should be reported to the IRS as other income. If this is incorrect, please let me know."

Send it, make a record of it and if you can, their receipt of it, and then forget it and report the money elsewhere.
+1.
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MP64
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Re: Employer refuses to put holiday gift on W-2

Post by MP64 »

Appreciate the feedback. There was actually an email just sent out to everyone that repeats exactly what I was told regarding putting it under "other income". I then overheard some other employees talking about how it should be on the W-2 as well, so I'll at least wait a few days and see if anything happens.

Gill wrote: Tue Feb 11, 2020 11:49 am Why are you worrying so much about this? Treat it the same as if the company give you a case of Scotch.
I'm worrying about it because it's not a case of Scotch, it's money, and I don't want to have problems with my taxes.

eye.surgeon wrote: Tue Feb 11, 2020 11:57 am Your conscience is right, you are making a fuss over a gift. Do you report your birthday gifts as 1099 income on your taxes? It was a gift, don't worry about it.
I don't think it can be compared to a simple birthday gift. When things come from an employer it's a whole different matter.

seymore92 wrote: Tue Feb 11, 2020 12:06 pm isn't it true that there is no requirement to report (birthday) gift income, but there is a requirement to report employer gift income?
My understanding is that all cash-like "gifts" from an employer are considered part of an employee's W-2 income. It's nearly impossible for an employer to give an actual tax-free gift to an employee since they would have to prove that it's not related in any way to the services that the employee provides.

whodidntante wrote: Tue Feb 11, 2020 2:03 pm Why would HR know anything about this?
It's a small company and one person handles HR and accounting/payroll.

Goal33 wrote: Tue Feb 11, 2020 2:05 pm next year's post:

"employer gave everybody a holiday gift except me"
Maybe, but that wouldn't bother me, honestly.

MnD wrote: Tue Feb 11, 2020 3:42 pm Do you take numerous entries from every pay stub and put them in a spreadsheet to be sure all the number totals match on your W-2? I don't.
No, we have a payroll site that summarizes everything, so it only takes a few minutes to see how the W-2 boxes are calculated.

Unladen_Swallow wrote: Tue Feb 11, 2020 4:25 pm First figure out what you're trying to achieve with all this back and forth.
I'm not looking to fight anyone or appear smarter, I just want to be able to do my taxes correctly so I don't get in trouble with the IRS. It seems like reporting it as "other income" is still misrepresenting the source, but perhaps it may be the least painful option overall.

Bobby206 wrote: Tue Feb 11, 2020 12:10 pm I am in the ignore it camp. I get a W2 and I pay taxes on that. I don't see if my employer made a mistake. If they did I imagine the IRS would be friendly to an employer mistake. I'd forget about it and move on.
If the company wants to mess up their taxes, that's fine with me, but when it affects my own taxes it becomes my problem. I don't think completely ignoring it is an option. I have a bank statement showing an extra deposit from payroll to my checking account. I either have to put it under "other income" as told or dispute the W-2 in some manner.

I'm probably going to wait a few days and see if any other employees mention it and then I'll decide on my next steps.
1130Super
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Re: Employer refuses to put holiday gift on W-2

Post by 1130Super »

seymore92 wrote: Tue Feb 11, 2020 12:03 pm
Big Dog wrote: Tue Feb 11, 2020 11:56 am you are correct, any cash gift over $75 is supposed to be included on your W2. But since it is not and HR refuses to issue Amended W2's, you have two choices: 1) add it to Other Income; 2) ignore it.
Isn't option 2: "ignoring it" illegal? Aren't the legal options to either add it to Other income or to have the employer issue a corrected W2?
And so is rolling through a stop sign, let it be and move on
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Re: Employer refuses to put holiday gift on W-2

Post by Dottie57 »

1130Super wrote: Tue Feb 11, 2020 4:50 pm
seymore92 wrote: Tue Feb 11, 2020 12:03 pm
Big Dog wrote: Tue Feb 11, 2020 11:56 am you are correct, any cash gift over $75 is supposed to be included on your W2. But since it is not and HR refuses to issue Amended W2's, you have two choices: 1) add it to Other Income; 2) ignore it.
Isn't option 2: "ignoring it" illegal? Aren't the legal options to either add it to Other income or to have the employer issue a corrected W2?
And so is rolling through a stop sign, let it be and move on
+1.
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dm200
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Re: Employer refuses to put holiday gift on W-2

Post by dm200 »

MP64 wrote: Tue Feb 11, 2020 11:45 am I'm a full-time employee at a small engineering company. I receive a W-2 each year with my wages in Box 1. In 2019, everyone received a check for a few hundred dollars which the company called a "holiday gift". The check has the name of the company's payroll account on it. When I received my W-2 a couple of weeks ago, this amount was not included in Box 1.
I brought this up with the HR person and they said that it doesn't need to be on the W-2 and that it falls under the required amount to issue a 1099, so I should just report it as "other income" on my taxes.
I read a lot of IRS documents, like Pub 15, Pub 15-B, and instructions for Forms W-2, 1099-MISC, and 8919, and everything seems to suggest that any cash-equivalent bonus or gift to employees should be on the W-2.
I went back to HR with this and they said that I was wrong and they don't need to do anything and I should just report it under "other income".
Who is correct here? I still feel like I'm correct based on everything I've read, but it's hard when you're going up against someone who's supposedly a professional in this stuff. It also makes me feel guilty for making a fuss over a gift.
It looks like if I'm correct I would have to file Form 8919, but that form explicitly states cases where you receive both a W-2 and a 1099-MISC. Can I still file Form 8919 even though I didn't get a 1099-MISC since the amount was under $600?
No "knowledge" - but several experiences over the years/decades -

1. When employed by a MegaCorp out of college, one year the MegaCorp employer gave us (I think it was just a certain group or location) a piece of Steuben Glass). Then, a few weeks later - there was some scrambling around about this "gift". The final result was that the value of this gift was taxable income to the employee. They then gave us some additional money so that, on balance or average, that extra money would fund the taxes we had to pay. All of this was included in the company's and our tax reporting.

2. For the last two years, at our annual Christmas/Holiday party, the CEO has an "envelope" for each employee - and she personally hands the envelope to every employee in attendance. I presume that employees not there get the envelope soon after at work. The envelopes contain "cash". One year mine was a $50 bill and the next year was a $100 bill. I immediately handed each to my wife :) . This "cash" (in my case $50 one year and $100 the next) was fully reported on my employer W-2 statement.

In this (the OP) case, I see no reason to pursue it. Just show it as income on your tax return - and make a notation of the details in your file copy. Unless your job involves tax reporting, it is NOT your problem. Yes - you are, in my opinion, correct. Just drop it and, perhaps or probably, these "smart folks" might become better 'educated". It is my understanding that you can (and should) report all income - whether you receive a W-2, 1099 or not. I would, then, just shut up. In several "past lives" I have dealt with HR folks who are BOTH ignorant and insistent they are always correct. In my opinion, there is no need to even risk being labeled as a "trouble maker". One other example of mine - for many years I have worked as a local elections officer - and am paid $175 each time by the county. They do not issue me a W-2 or 1099 or anything. I do report this as income each year - and often there are two or three such elections per year.
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dm200
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Re: Employer refuses to put holiday gift on W-2

Post by dm200 »

If the company wants to mess up their taxes, that's fine with me, but when it affects my own taxes it becomes my problem. I don't think completely ignoring it is an option. I have a bank statement showing an extra deposit from payroll to my checking account. I either have to put it under "other income" as told or dispute the W-2 in some manner.
My suggestion of "ignoring it" applies to dealing with the employer. I would not "ignore" it when filing my tax return - and would report that amount as income.
Liam Friend
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Re: Employer refuses to put holiday gift on W-2

Post by Liam Friend »

One possible motivation for an employer doing this can be to avoid additional federal overtime liability. Some bonuses (depending on the circumstances) are required to be included in calculating the employee’s base hourly rate for a given pay period. That can then increase the amount of time and a half pay due for overtime in that pay period. The dollars due can add up if there are a lot of employees working overtime.
Teague
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Re: Employer refuses to put holiday gift on W-2

Post by Teague »

I'd just report it as other income, as suggested above.

You mention this is a small company with a one-person HR "department." Particularly given that fact, I'd not bring it up again. Else the HR person may bring to the attention of the owner this seemingly odd fellow, MP64 from the left-handed widget department, who keeps stirring up trouble because we did something nice for him.
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dm200
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Re: Employer refuses to put holiday gift on W-2

Post by dm200 »

Teague wrote: Tue Feb 11, 2020 5:24 pm I'd just report it as other income, as suggested above.
You mention this is a small company with a one-person HR "department." Particularly given that fact, I'd not bring it up again. Else the HR person may bring to the attention of the owner this seemingly odd fellow, MP64 from the left-handed widget department, who keeps stirring up trouble because we did something nice for him.

Yes - it is often the case, as well, that in such very small companies -- this HR person also has many other duties.
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Re: Employer refuses to put holiday gift on W-2

Post by fyre4ce »

Failing to report the income would be illegal (tax evasion). Yes, so is rolling through a stop sign and driving 56 in a 55, but discussing or recommending tax evasion is against forum policies, even if the amount is small. The forum may or may not have policies against discussing minor traffic infractions.

I agree with those who said I’d report it as other income and stop bugging the employer about it.
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Re: Employer refuses to put holiday gift on W-2

Post by aristotelian »

Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
rkhusky
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Re: Employer refuses to put holiday gift on W-2

Post by rkhusky »

If I was the owner and it caused too much issues, I would just give a turkey or a ham next year.
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

aristotelian wrote: Tue Feb 11, 2020 6:04 pm Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
Nonsense! Are you really going to say this to your employer?
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dm200
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Re: Employer refuses to put holiday gift on W-2

Post by dm200 »

aristotelian wrote: Tue Feb 11, 2020 6:04 pm Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
NO! Absolutely not.

IMO, that will get you on the troublemaker list!!
aristotelian
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Re: Employer refuses to put holiday gift on W-2

Post by aristotelian »

Gill wrote: Tue Feb 11, 2020 6:17 pm
aristotelian wrote: Tue Feb 11, 2020 6:04 pm Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
Nonsense! Are you really going to say this to your employer?
Gill
Why not? He probably already has it. I assume he emailed them about this and has their response.
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MP64
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Re: Employer refuses to put holiday gift on W-2

Post by MP64 »

aristotelian wrote: Tue Feb 11, 2020 6:04 pm Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
I made a copy of the company-wide email they sent, so I have proof that they specifically told us to put it under "other income".

I also have the original email I sent with my questions about whether it should be on the W-2, so there's decent evidence that they didn't agree with me.
Gill
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

Report it however you wish. I’m always careful about not advocating tax evasion, but certain situations are essentially trying to be holier than the Pope.
Gill
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LadyGeek
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Re: Employer refuses to put holiday gift on W-2

Post by LadyGeek »

I want to address several comments related to cash gifts from an employer. For the record, discussions of dishonest behavior or bypassing the law are totally unacceptable.

The intent is to understand how to do this within the existing legal framework; in which case this discussion can continue.

The approach is to educate members on how to do things legally. State your points in a factual manner. If the intent strays from this objective, please report the post and we'll investigate.

The IRS guidelines on cash gifts are here: De Minimis Fringe Benefits
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Gill
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

This seems to fall under the de minimus rule.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
thx1138
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Re: Employer refuses to put holiday gift on W-2

Post by thx1138 »

Gill wrote: Tue Feb 11, 2020 8:03 pm This seems to fall under the de minimus rule.
Gill
No it most certainly does not (from LadyGeek's IRS link):

Cash or cash equivalent items provided by the employer are never excludable from income.
Last edited by thx1138 on Tue Feb 11, 2020 8:14 pm, edited 1 time in total.
thx1138
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Re: Employer refuses to put holiday gift on W-2

Post by thx1138 »

Since it sounds like they put it out in writing that they want you to do "other income" and you say other workers are also noting that it should really be W-2 then I'd just wait a bit on filing your taxes and see if the company changes its mind and gives an updated W-2. If they don't in the next few weeks then I'd follow their instructions to put it as "other income" and keep copies of the relevant emails as you already plan to do. But give it a little time to sort out - it would be annoying to have to file an amended return because they change their mind finally in a week or two. Amended returns - especially state returns - are typically a royal pain even with tax software.

Worst case somewhere down the road the IRS sends you a notice saying you owe $X because the company didn't do things write and you send the IRS a check for $X.
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