Viewing a single comment thread. View all comments

plazman30 OP t1_ja3kxxd wrote

Reply to comment by hlmarsh1792 in A BIFL rant about corporate purchases.... by plazman30

If they give you a gift card, they have to tax you on it now. Very frustrating and why a lot of companies don't do it any more. They don't want to have to track it.

1

hlmarsh1792 t1_ja60krq wrote

Oh man, I didn’t realize! What a bummer!

1

plazman30 OP t1_ja67lgf wrote

Yeah, the IRS now requires you to pay taxes on any corporate perks. Years ago, I worked for McNeil Pharmaceuticals, which was a division of J&J. They used to run a company store that sold J&J products at cost. You could buy a giant bottle of Tylenol for $1.99. Diapers and baby power were dirt cheap. Supposedly, when the law went into effect, they were supposed to track employee purchases and if the total discount exceeded $100 throughout the year; they were supposed to include it in your W2. The company didn't want to go through the effort. The company store broke even. With these new rules and the additional paperwork, it would have operated at a loss. So, they shut the store down.

I had a friend who worked for American University in DC. Low salary, but he was getting his Masters Degree for free. Law went into effect, and the school yanked the free tuition because of the new IRS regulations.

1