📣 Updated Enterprise Terms of Use and Privacy Notice will start on June 1, 2024. These changes include adjustments to Snappy’s refund policy for prepaid funds to better align with applicable laws and regulations.
How are Snappy gifts budgeted and invoiced?
1. You send out gifts
When sending gift choices we estimate the cost based on the selected gift budget, Snappy's service fee, and 10% sales tax.
2. Recipients claim their gifts
Based on the selected gift, we calculate the final price of the item selected, the applicable tax rate based on the recipient's address, and Snappy's service fee.
3. You save money!
Any difference between the estimated and actual gift cost is returned to your balance on the first business day of each month and can be used towards future gift sends.
What is Snappy’s service fee?
Snappy’s service fee includes the utilization of Snappy’s platform to send gifts, the ability to personalize the gift experience, logistics, curation and our customer & recipient support.
To locate your service fee, head to the Billing tab and select the hyperlink to our calculator. This is a great tool to help you easily budget for your campaign.
How can I contact Snappy’s Billing Team?
Please submit a ticket to our Billing team here for questions on the below:
Questions on an invoice line item
Confirming payments were received (ex. ACH wire or check)
Transfer funds request from one billing method to another (prepay or instant pay)
Forwarding your company's tax exemption certificate
Where can I find my invoice?
To review all your past invoices, please log into your Dashboard → navigate to your Billing tab → select the "Invoices" section.
The PDF will be your invoice, whereas the Invoice detail will be your invoice breakdown. This report will give you a breakdown of all gifts claimed within the previous month, your recipient's name, which gift was claimed, the tax and fees associated with it, etc. Please note, the invoice detail will only be available for invoice type = "Gift spend."
Prepayment
One prepay billing method per account.
Adding and managing your prepay billing method:
Each account can open one prepay billing method
To add funds, use the “Add Funds” button next to your existing prepay.
If you need additional help, reach out to Product Support at help@snappy.com for assistance.
How can I request a refund for my prepaid funds?
Click here to be redirected to our Refund help article.
How can I consolidate/transfer funds?
To consolidate funds on your billing method, submit your request here.
Click "Transfer Funds" and follow the prompts.
After the form is submitted, the request will be sent to our Finance team and you will receive a follow-up email once the transfer is completed.
Taxes & Fees
For every Snappy gift, applicable taxes and fees will be applied. Please review the below for more information.
How are taxes calculated?
In accordance with sales tax law Snappy charges sales tax based on the shipping location of the gift. Snappy is currently registered to collect & remit sales tax in:
All US states that collect sales tax (AK, MT, OR, NH don’t collect sales tax)
Canada
UK
Snappy is currently in the process of registering in additional countries to collect and remit sales tax and customers will see applicable sales tax reflected on their invoices once registration is complete.
Tax exemption
If you are tax-exempt in a state, please send a copy of all of your tax-exempt certificates to the Finance team here for approval. Once approved, the exemption will be reflected on your future monthly gift invoices.
Note: The budget calculator does assume an estimated 10% taxes by default as the shipping location of gifts is not known at the time of the send, but all valid tax exemptions will be factored into the final cost of the gift in your monthly invoice.
Income Tax Treatment of Snappy Gifts
Snappy is unauthorized to consult on any tax-related questions. This is just some helpful information and resources for your accounting team to review.
Unlike gift cards or cash, tangible gifts don't need to be taxed in many cases as long as one of the following applies:
Achievement Awards
If the gift is an anniversary gift (5, 10, 15, years etc.) and has a value of up to $1,600 it does not need to be taxed as long as it applies to specific standards.
Read the fine print: https://www.irs.gov/pub/irs-pdf/p15b.pdf (pages 7-8)
De Minimis
If the value of the gift is so small in relation to the frequency with which it is provided that accounting for it is unreasonable or administratively impracticable it does not usually need to be taxed.
In determining whether a benefit is de minimis, you should always consider its frequency and its value. The IRS has ruled previously that items with a value exceeding $100 could not be considered de minimis. However, the law does not specify a value threshold for benefits to qualify as de minimis. The determination will always depend on facts and circumstances.
Read the fine print: https://www.irs.gov/pub/irs-pdf/p15b.pdf (page 9)
For all other gifts, most companies will record the value of the gift on the employees' W-2. For this to be simple, we provide a very detailed invoice in Excel format so you can easily review and record the gift that the employee selected.
Where can I find Snappy’s bank information?
You can download Snappy's ACH instructions, bank letter, and W-9 below. Snappy's banking information is also included in our invoices.