Nectar can't give any tax advice, because tax laws vary by country, state, province, prefecture, municipality, and (sometimes) company type. Nectar recommends consulting with your company's finance department, appropriate legal or tax advisor regarding tax decisions.
We make sure to give you the reports needed for taxes. Regardless of where your teams are located, or what type of organization you're a part of, it's easy to download a report of your employee's redeemed rewards in Nectar. The report can be sent to your finance or accounting department to use for compliance with any applicable tax laws.
You can view and download this report from the Analytics > Financials Reports section if you are an administrator in your team's account. The report can be changed to any date range. Once your date range is set, you just click the 'Export to CSV' button near the top-right corner in order to download the report.
Some Examples
Although Nectar can't give any tax advice, we can offer some notes of how some customers have approached the question.
Some of Nectar customers don't treat gift cards as taxable income while others do. Some treat gift cards and other rewards as non-taxable as long as the total amount earned is below a certain amount per year (e.g. total rewards redeemed are less than $400/year).
These are just examples. Your finance department, appropriate legal or tax advisor will need to determine your specific course of action.
Tax Notice for Gift Cards, Amazon, and Swag
Nectar has a tax notice popup that can be enabled for gift cards, Amazon, and Swag. Before users are able to redeem their reward, they will see a popup message that says:
This message will be displayed every time a user tries to redeem a reward. Please note that this message is not customizable. Here is a quick video overview of the gift card redemption process with the tax notice enabled.
This feature is not enabled by default, so please reach out to your Nectar account manager if you'd like to have this enabled.
The information contained herein is not legal or tax advice and is not intended to be used, and cannot be used, for purposes of avoiding tax penalties or tax. Nectar assumes no obligation or responsibility to inform the reader of any changes in tax laws or other factors that could affect information contained herein. Before making any decision based on this information you should consult with the appropriate legal or tax advisor.