Will we have to pay payroll taxes on rewards?

Tax obligations vary by country and reward type, so we recommend consulting a tax advisor for your specific situation.

For companies with US employees, monetary rewards — like gift cards — may be subject to payroll taxes if the IRS considers them compensation. If you offer monetary rewards, you can export all redemption data at year-end from your Admin → Redemptions page to calculate the total value each person received. This is typically handed off to your accounting team.

If taxes are owed, the best practice is to gross up the tax amount so the employee isn't personally on the hook for additional taxes on top of their reward.