Should these "benefits" be added to personal income? As a boss, what is the most appropriate way to give gifts to employees?
It's the end of the year again. At this time of year, small and medium-sized enterprise bosses will think about how to accompany their hard-working colleagues to distribute some benefits and make some profits. Then today's video will definitely give you a clear concept.
October is almost here in 2020. At the end of every year, many companies will hold annual meetings to summarize the achievements of the year and commend some outstanding employees. So among all the rewards given by companies to employees, which ones are considered taxable benefits and which ones are not?
First of all, the tax law defines the concept of gift in three situations: one is cash, which means giving cash, which can be used to buy anything; the second is near cash, which has been defined only recently, and is something close to cash, such as a gift card, which you can use to buy anything you want in a store; and the third is non cash, which is giving something directly, such as a trophy or certificate, a movie ticket for a designated date and show, or a suit tailored for you, or a small gift from the owner of the baby shower, etc.
Since the first type of cash is very clear and must be taxed, I will not explain it in detail. However, in real life, near cash and non cash take various forms as gifts. Some are taxable benefits, some are not, and some are taxable benefits within a certain amount, but are counted as taxable benefits if they exceed a certain amount. So for such a complicated situation, I plan to use the example of Mr. Li preparing to give bonuses to his employees at the end of the year to analyze it in detail.
