Acknowledging an employee's contribution to the company is almost always a good thing and helps to reinforce their commitment to the company.
When you give a gift card (or any monetary benefit) to an employee, you should consider the tax implications. Some bonuses may be taxable and therefore must be reported accordingly.
Usually discretionary bonuses - those that are given "just because" - are not taxable. However, if they become expected or a regular occurrence, then they may be.
Conversely, non-discretionary bonuses - those that are given regularly or as part of a compensation plan (such as performance bonuses or holiday bonuses) - are usually taxable.
Regardless of the type, timing, or value of the reward, be sure to give it with the right message. Just handing someone a gift card will not have the same impact as giving it along with a personalized conversation or note about their contribution to express how much you value them.
Affinity HR Group is BSCAI's endorsed HR partner, providing HR support, recruiting and employee engagement services. For a link to our menu of services for BSCAI members, go to www.AffinityHRGroup.com/BSCAI