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.
Please note: The budget calculator does assume 10% 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.
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.