Gifts and awards outside our policy

Our policy does not cover cash or near-cash gifts or awards. A near-cash item is one that can be easily converted to cash, such as gift certificates, precious metals, or securities. Additionally, we consider a gift or award that allows the employee a wide selection of choice in the item they receive, such as a gift certificate that cannot be converted to cash, to be equivalent to cash.

Performance-related awards are also outside our policy, and are taxable income to the employee. Performance-related awards include awards for meeting production or sales targets, or for completing a project on time. We consider a performance-related award to be an additional remuneration for the job the employee was hired to do - similar to a bonus - and, as such, is taxable.

Regardless of the cost, the following gifts and awards are considered a taxable employment benefit:

• cash or near-cash gifts and awards such as Christmas or holiday bonuses or near-cash gifts and awards such as gift certificates;
• points that can be redeemed for air travel or other rewards; or an internal points system where an employee earns points and can redeem them for items from a catalogue;
• reimbursements from an employer to an employee for a gift or an award that the employee selected, paid for and then provided a receipt to the employer for reimbursement;
• hospitality rewards such as employer-provided team building lunches and rewards in the nature of a thank you for doing a good job;
• gifts and awards given by closely held corporations to their shareholders or related persons;
• disguised remuneration such as a gift or award given as a bonus;
• manufacturer-provided gifts or awards given directly by the manufacturer to the employee of a dealer; for more information, see Awards from a manufacturer or promotional items.

For more information, call Business Enquiries at 1-800-959-5525.