The cost of holiday turkeys distributed to employees is included in the employees' income.
Small tokens, like holiday turkeys, fall under the de minimis rules and are non-taxable due to the impracticality of keeping track of each employees benefit.

Question

Quizplus · Accepted Answer

The statement in the question is false. The cost of holiday turkeys distributed to employees is considered taxable income and must be reported on the employee's W-2 form. The de minimis rule applies to small benefits (less than $100) that are provided infrequently and are difficult to track, such as occasional snacks or beverages in the workplace.

The Cost of Holiday Turkeys Distributed to Employees Is Included