Which expense item should I use for sympathy flowers and gifts?

Sympathy flowers (i.e. for funerals, etc.) are not taxable at any amount. Please use the expense item Employee Award Non-Taxable for floral arrangements, food, and greeting cards given to express sympathy or get-well wishes regardless of the amount, even if the arrangement is over $100. The IRS considers flowers provided under special circumstances as a de minimis fringe benefit so they are therefore not taxable.

 

If flowers are for an employee and are not for sympathy, they are taxable if $100.00 or more and should be expensed under Employee Award Taxable.