PraisePal cannot provide specific tax advice due to the complexity and variability of tax laws across different jurisdictions, including countries. It's crucial to consult your company's finance department for definitive guidance on tax-related matters.
No matter your organization type or where your employees are located, you can instantly download reports of your employees' reward redemptions from your PraisePal workspace at anytime.
The Reward Redemptions Reports can be sent to your finance department to use for compliance with any applicable tax laws, and you can get data on both Gift Cards and Company Rewards redemptions.
The Reward Redemptions Report
To export the rewards redemptions data, head over to the Admin Page here.
You can simply go to 'Rewards' and click on 'Redemptions'.
Choose the reward type: Company or Gift Card.
Click the 'Export' button located in the top-right corner.
Once you click on Export, you can choose the required month of the data you need.
Clicking on 'Export All Time Data' enables you to export all the available data from your workspace since the day you started using the platform.
The data will be sent automatically to your email.
For detailed instructions, refer to this article: Export Live Data From Workspace.
Common Examples
While PraisePal cannot provide specific tax guidance, we can share some general approaches that other companies using our platform have taken regarding rewards and taxation. These examples may offer insights, but it's important to remember that each company's situation is unique and may require different solutions.
Some PraisePal users consider gift card rewards as taxable income and report them accordingly. Others classify these rewards as non-taxable benefits. A third approach adopted by some companies is to treat gift cards as non-taxable up to a specific annual threshold (for example, exempting gift card rewards from taxation if the total value remains under $1,000 per year).
Depending on your organization and locations, your finance department might also want to comply with certain local tax regulations. For example in Singapore, gift cards given for long service is taxable, however gift cards given as recognition for good service provided is not taxable up to SGD$200. Different regulations also apply for gift cards given on other ocassions.
As such, the chosen approach often depends on various factors specific to each organization and its jurisdiction.
These examples are illustrative and not prescriptive. Ultimately, your company's finance department will need to assess your specific situation and determine the appropriate course of action regarding the taxation of rewards.
Donations and Tax Deductions
The PraisePal Rewards Catalog offers a diverse range of reward options, including donations to numerous vetted charitable organizations. These charitable donations are processed and fulfilled by PraisePal, similar to other rewards in the catalog.
It's important to note that donations facilitated through PraisePal are not tax-deductible for either the company or the employee, unless otherwise stated on the Terms and Conditions of the gift card reward. Additionally, since employees do not receive a cash benefit from these donations, they do not incur any tax liability.
PraisePal also provides the option to create customized Company Rewards for donations to charities not currently featured in the standard Gift Cards Reward Catalog. These custom donations are fulfilled directly by your company.
For any questions regarding the fulfillment process or tax implications of these custom donations, it is advisable to consult your company's finance team, tax professionals, and the recipient charitable organization.