Question: Gift Cards to Teachers

Our PTO runs an afterschool club, we charge $30 per student. Some of the teachers help out with the different clubs. We would like to use the funds raised and give it back to the teachers in the form of a gift card. Is that acceptable? The gift card would be about $500 to each of the teachers that helped out. Is there a limit on the amount of money we can gift to the teachers?

Asked by Anonymous

Answers:

Community Advice

gjcoram writes:
If you pay more than $600, you will need to file a 1099-MISC. (The teachers are supposed to report such miscellaneous income, regardless of whether they get a 1099-MISC.) Do the teachers want gift cards, or a check? We pay our teachers $25/hour for some after-school activities.