You know the song – sing it with me…

You better watch out
You better not cry
You better not pout
I'm telling you why
Santa Claus is coming to town

He's making a list
He's checking it twice
He's gonna find out who's naughty or nice
Santa Claus is coming to town

Here’s the thing, Santa may know the perfect gift, but no one ever said he was good at the cost/benefit ratio or tax consequences of spreading a little holiday cheer, by way of presents. Sure it would be great fun to gift TVs, airline tickets, and hotel stays to all of your employees – but gifts have consequences, and unfortunately it usually follows that the bigger they are… the bigger the consequences.

When you’re a small business, operating lean is foundational to your existence. Understanding the implications (and tax ramifications) of gift giving can keep small biz employers out of trouble during this most wonderful time of the year. (We advise that employers should always consult their tax advisor before presenting employees with a gift.)

Here at SeeKing HR, our holiday gifts are often based in providing additional perks at our work location. While it may sound trivial, especially to big business, a few of our out of the box holiday gifts have included:

• Upgrading our coffee maker to a full coffee/cappuccino bar
• Personalized office chair shopping
• Unique office supplies that match the personalities of the employees
• Stocking up on individually selected snacks – so that everyone has their faves on hand
• Handmade/Homemade treats

It turns out even Santa knows that the best gifts aren’t always the biggest ones. Gifts that are small and of a personal nature are not only acceptable, they’re usually more meaningful to your employees. Which, from an employee engagement standpoint, is always a good thing.

Happy (responsible) gifting!!