5 simple steps to giving your employees the perfect gifts

Finding the perfect gift for an employee can be tough, especially with strict gift tax policies. However, there are plenty of clever ideas for any occasion. Here are five simple steps sure to help you.

At some point in their career almost everyone has received a cliché gift from their boss, whether it was a pen, coffee mug or magnet.

Today, you have the opportunity to break the cycle. Instead of the mundane and unoriginal, here are some fun and personal award and gift ideas that don't feel like an attempt just to get rid of branded knick-knacks that have been piling up on your shelves.

Where to start?

This is key to picking a meaningful gift. What does each employee like to do when they're not at work? Do they like reading? Going to the movies? Eating out with friends? Everyday interactions can often clue you in on their likes and dislikes, so strike up a conversation and take mental notes.

Will you be giving gifts to all of your employees? If this is the case, you may want to stick to giving them each the same item. That way, no one feels slighted in the least. Restaurant gift cards are often a good choice. You can choose a local eatery that has recently opened or perhaps get gift cards to a restaurant nearby that your employees can visit on their lunch break.

If you're giving a gift to one person only, you can be more creative. If you follow Step 1, you will know about their interests. Then, you can decide on something you know they will enjoy.

Visiting gift shops in the area can serve as great inspiration for gift ideas since they often carry a variety of items including books, accessories and edible goods. Try local stores before going to large chains as you have a greater chance of finding something unique and memorable.

Besides picking out the perfect gift, you should consider if there will be any tax implications. Currently the Canada Revenue Agency (CRA) has strict policies on gifts and awards.

Their current policy states that any combination of non-monetary gifts given during one year under $500 does not need to be reported within the employee’s income. If the gifts received exceed this amount, then your employee is stuck with claiming the excess on their taxes, which can really sour the gift receiving experience.

As an employer, you may also be able to claim certain gift expenses on your company’s taxes, so always be sure to keep good records when it comes to purchases. If you're interested in learning more about tax implications and deductibility, you can always speak to an accountant or you can gather more information from the CRA website.

You're now ready to really go above and beyond when it comes to giving gifts for achievements, birthdays and holidays. With these easy-to-follow steps, employees are sure to take note of your thoughtfulness, excellent gift-giving abilities, and will appreciate you even more.