What expense category is a gift card to employees?
The answer to this question depends on the specific circumstances of the gift card and how it is used by the employees. Generally speaking, a gift card to employees could be classified as a business expense, a marketing expense, or a payroll expense.
Business Expense
If the gift card is given to employees as a business expense, then it would fall under the category of business expenses. This would typically be the case if the gift card is given to employees as a thank you for their work or as a reward for meeting certain objectives. The business expense would be the cost of the gift card itself.
Marketing Expense
If the gift card is given to employees as a marketing expense, then it would fall under the category of marketing expenses. This would typically be the case if the gift card is given to employees in order to promote the company or its products/services. The marketing expense would be the cost of the gift card itself.
Payroll Expense
If the gift card is given to employees as a payroll expense, then it would fall under the category of payroll expenses. This would typically be the case if the gift card is given to employees as part of their compensation package. The payroll expense would be the cost of the gift card itself.
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