Question: Our company allows employees to sell up to 40 hours of their accrued PTO (accrued vacation) each year. If an employee elects to sell the accrued PTO, we pay it out in a lump sum at the end of the year. Does this raise any concerns?
Question: Our company awards prizes at holiday parties and, from-time-to-time, at employee appreciation events. The prizes range from company logo t-shirts to $50 gift cards and cameras worth about $125. Do we need to report any of these items as compensation on Form W-2 for the employees who win these prizes?