Roche & Cie

The social regime of gifts and vouchers

18 Nov 2016

As we approach the end of the year, we have summarized the system applied to gifts and vouchers offered to employees.

Are they exempt from social security contributions?

Gifts and vouchers awarded to employees by the employer are, in principle, subject to social security contributions, the CSG and the CRDS.

The administration admits that they escape these contributions if the total amount of vouchers and gifts granted to each employee in the same calendar year does not exceed 5% of the monthly Social Security ceiling , that is 161€ for 2016.

Christmas vouchers and gifts can also be exempt from payroll taxes if they are offered to the children of employees up to 16 years of age. In this case, the threshold of 161 is assessed separately for the employee and for each of his / her children.

When this annual threshold is exceeded, a gift certificate or gift can still be exempted from social security contributions but under certain conditions only. Indeed, it must be offered for a particular event (Christmas is one).

In the case of a purchase voucher, it must indicate its price, its nature and where to buy it. Example: FNAC voucher of 200 € for the purchase of a tablet, or good multi-signs.

Attention, if the voucher or Christmas gift does not meet these criteria, it will be subjected, for the whole of its value, to the social contributions.

Note: Fuel checks and food vouchers are not exempt from social security contributions, except for luxury products whose festive character is known as foie gras or champagne.

The Manager can benefit from a voucher?

The manager is not considered to be an “employee” within the meaning of labor law. As a corporate officer, he can not benefit from a purchase order; If he uses them, the voucher will be subject to contributions.

In the event that the officer cumulates his mandate with a contract of employment, the benefit of the purchase voucher is admitted and the exemption of contributions will apply.

Can the trainee benefit from a purchase order?

The trainee is not an employee. He therefore can not benefit from a purchase order.

However, Article L. 124-16 of the Education Code specifies that the trainee must take advantage of the social and cultural activities of the works council. When vouchers are issued by the latter, the trainee must benefit from them.