According to IRS Publication 15, cash and cash equivalent fringe benefits, no matter how little, can never be excluded from tax withholding. One example given is the use of gift cards. In order to follow these regulations, Santa Fe College will make tax withholding adjustments for those employees who receive gift cards.
The calculation of tax on the gift cards is based on each employee’s taxable rate, W-4 elections and Social Security/Medicare rates. You will see an increase in your taxable gross amounts shown on your pay stubs as well as an increase in the amount of Social Security, Medicare and income tax withheld.
If you have questions regarding the taxation of your gift cards, please contact Chris Stenftenagel at 352-395-5218 or chris.stenftenagel@sfcollege.edu, Ramona Mount at 352-395-5927 or ramona.mount@sfcollege.edu or Sally Bina at 352-395-5212 or sally.bina@sfcollege.edu.