Which of the following is true?

For her 10 years of service, an employee was given a gold necklace valued at $100.

Which of the following is true?
A . the gift must be included in her taxable compensation
B . the gift is tax free
C . only social security and medicare tax should be withheld on the fair market value of the award
D . only federal income tax should be withheld on the fair market value of the award

View Answer

Answer: B