Christmas Gifts for Employees at a Small Business (2026): Cash, a Gift, or Both?
Updated
In short
A cash bonus comes first if a small business can afford one: in a 2014 Express Employment Professionals poll, it was the single reward employees picked most. Then the same small gift for everyone, with a note naming what each person did. No bonus budget? A modest gift with a real note, a team meal or paid time off.
On this page14 sections
We sell a $35 logo mug gift box, printed, packed and shipped to each person's address. This guide covers the other options too.
Key facts
- 27% vs 1%: asked how they wished their company showed appreciation, 27% of employees in an Express Employment Professionals poll chose "Cash bonus", 1% chose "Gift items other than money" and 35% chose "A combination of the above" (SHRM, Dec 2014; old data).
- The gift still does more than its price. In a field experiment, Kube, Maréchal and Puppe found that "nonmonetary gifts have a much stronger impact than monetary gifts of equivalent value", even though workers offered the choice preferred money (AER, 2012).
- 82% of employees expect "a thoughtful, personalized note with their gift", and 84% prefer holiday gifts in December, "especially mid-to-late month" (Snappy's 2025 survey; Snappy is a gift platform and doesn't publish its sample size) (Snappy).
- $62 average, $25 median: employers' 2025 holiday gifts sent through Tremendous, a gift-card and payouts platform, across "over 260,000 gifts" (Tremendous; platform data, not a market survey).
- Gift cards are never a de minimis benefit: the IRS says cash equivalents such as gift cards, "no matter how little, are never excludable as a de minimis benefit" (Publication 15-B).
What Do Small Businesses Give Employees for Christmas? Often Cash
In September 2026, someone helping their husband plan Christmas gifts for his business of around 50 employees asked r/smallbusiness where to start. They wanted "something people would actually use instead of another random mug that ends up in a cupboard somewhere" (thread). Most replies said the same thing. The bluntest: "They want MONEY. … Not trinkets. Not a ham." Another: "branded merch is for the company, not the employee."
Here is what owners in that thread said they actually give. It is one thread, not a survey, but the numbers are real.
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| What the owner described | The amount, in their words | Team |
|---|---|---|
| A bonus on their pay before Christmas | "$75 for part time and $150 for full time" | "We're not a huge company" |
| Cash in an envelope, by seniority, plus a payroll bonus | "$100 per year in cash that they've been with us" | 30 employees |
| Cash by years of service | "$50 for new employees and $100 for every year they have worked for me" | A cleaning business |
| Cash plus a meal | "$500 cash and then either a nice lunch or dinner" | About 10 employees |
| A company bonus plus a gift from the owner | The gift "usually under $50" | Not stated |
| A bonus check inside a handwritten card, with a small gift | "boxes of chocolates from Costco" | 18 to 22 employees |
| An extra paycheck | "Roughly an extra paycheck" | A seasonal business |
A few owners added a gift on top of the cash. Almost nobody suggested a gift instead of it.
Cash, a Gift, or Both? Decide in One Table
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| Your situation | What to give | Why |
|---|---|---|
| You can pay a bonus | The bonus, through payroll, with a short note | Cash is what employees ask for; one owner's rule: "Money first, and if there's more in the budget, then a physical gift is fine in addition." |
| You can pay a bonus and want something personal | The bonus, plus the same small gift for everyone and a note naming one thing each person did | The note and the effort are what the research says people respond to (next section) |
| No bonus this year | Say so plainly, then give a modest gift with a real note, a team meal or paid time off | Thread suggestions: "a catered meal or meal away from the office" and "an additional paid day off" |
| About $20 a head or less | A real note, and a meal or a treat | The treat gets eaten and the note gets kept; our finished gift box is $35 |
| A remote or spread-out team | One gift shipped to each home, with a card per person | See gifts for remote employees |
One rule matters more than the table (our suggestion): never present a gift as a replacement for a bonus people expect. Tell the team what this year looks like, then give whatever you give.
A custom logo mug gift box, shipped to each employee's home
$35 per box, delivered. No minimum: one box is fine. Add your address list and we ship each box to its own address.
See the gift boxWhy the Note Matters as Much as the Money
Employees prefer cash when asked, but they respond more to a gift. In the American Economic Review experiment, Kube, Maréchal and Puppe found that "nonmonetary gifts have a much stronger impact than monetary gifts of equivalent value", and that even cash gifts "can effectively trigger reciprocity if the employer invests more time and effort into the gift's presentation" (AER, 2012).
Owners in the thread described exactly that effort. One prints paper bonus checks, "even if they normally do direct deposit and sign them personally." An employee remembered a CEO who "handed out a crisp $100 to everyone with a personal, hand written note. Mattered a lot to me as a young person."
A note that works has three parts: their name, one specific thing they did this year, and thanks. "Priya, the onboarding guide you rewrote in March saved every new hire a week. Thank you." More wording: employee holiday card messages.
Should Every Employee Get the Same Gift?
For the gift itself, yes. Givers shopping for several people tend to pick a different gift for each one and pass up the gift recipients would like most (Steffel & Le Boeuf, 2014). One gift for the whole team also removes the comparison problem: nobody unwraps theirs next to a coworker's better one.
The bonus can differ, as long as the rule is the same for everyone. Owners in the thread tied it to years of service or hours, and one explained why: "that way it is not subjective, and everyone gets it." The $75 part-time and $150 full-time split above is that idea in practice. Brand-new and seasonal staff are their own question: see who gets a holiday gift.
What Makes an Employee Gift Feel Personal, Not Corporate
- Brand the card, not the gift. A commenter who said they own a gifting company: "do not brand the gift. Sure, you can brand the ribbon or card and consumable items, but otherwise make it a genuine gift for the employee."
- Something they'll eat or use. Treats get eaten; useful things get used. Several replies pair the bonus with food: chocolates, a ham, a turkey.
- Names beat logos. One owner gave engraved thermoses carrying the logo and the team's names: "the named mugs went over great. Almost everyone carries them daily at work" (a team of about 10).
- The same gift for everyone, and a note that names each person.
Most of that list is the gift Personalized Gifts Delivered makes: treats they'll eat, a mug they'll use, the same box for everyone, and a printed card that greets each person by first name (a logo mug gift box with Ghirardelli cocoa, Lindt truffles and a personal card). If a logo would read as merch, the order page offers a photo or a few typed words instead, the same on every mug in the order.
Gift Card, Cash or a Gift: What the IRS Says
Gift cards are the case the IRS spells out, so here is its own wording.
"Cash and cash equivalent fringe benefits (for example, gift certificates, gift cards, and the use of a charge card or credit card), no matter how little, are never excludable as a de minimis benefit."
Among the IRS's examples of de minimis benefits: "Holiday or birthday gifts, other than cash, with a low fair market value (FMV)."
Source: IRS Publication 15-B (2026), "De Minimis (Minimal) Benefits", read Oct 26, 2026.
"Whether an item or service is de minimis depends on all the facts and circumstances." "The IRS has ruled previously in a particular case that items with a value exceeding $100 could not be considered de minimis, even under unusual circumstances."
Source: IRS, "De Minimis Fringe Benefits", read Oct 26, 2026.
The IRS publishes no dollar threshold for a de minimis holiday gift. The $25 limit people often quote is a different rule, from IRS Publication 463 on business gifts. Whether your gift qualifies is a question for your tax professional, not for a seller.
This is information, not legal or tax advice. Check the current rule (or ask your tax professional) before you send. More: employee gifts and taxes.
How Much Should You Spend on Each Employee?
There is no neutral, current survey of small-business employee gift spending. On Tremendous, a gift-card and payouts platform, employers' 2025 holiday gifts averaged $62, with a $25 median; a 2014 Challenger, Gray & Christmas survey described smaller year-end gifts as "typically valuing less than $100" (SHRM). Spending more on the gift itself buys less than you'd think: recipients' appreciation is not linked to price (Flynn & Adams, 2009). Put the money into the bonus and the effort into the note. Benchmarks and a per-head table: how much to spend on employee Christmas gifts.
When Should Employee Christmas Gifts Arrive?
In Snappy's 2025 survey, 84% of employees said they prefer holiday gifts in December, "especially mid-to-late month" (vendor survey, linked above). One commenter suggests paying bonuses "one week before Christmas so they can spend it on their kids or festivities if they want."
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| Occasion | 2026 date | USPS send-by (lower 48) | Order Personalized Gifts Delivered by |
|---|---|---|---|
| Hanukkah begins | Evening of Fri Dec 4 | n/a | Mon Nov 23 |
| Christmas | Fri Dec 25 | Ground Advantage Dec 17, Priority Mail Dec 18, Priority Mail Express Dec 19 | Tue Dec 15 |
| New Year | Fri Jan 1, 2027 | n/a | Mon Dec 21 |
USPS calls its dates "recommended" and says actual delivery "may vary" (USPS). A New Year gift suits a mixed team: it arrives after the rush and belongs to no one holiday. Every date in one place: 2026 holiday order-by dates. Ordering for a big team in December: bulk Christmas gifts for employees. A remote team needs home addresses first: collect them with an opt-in.
Can You Pack and Ship Employee Gifts Yourself?
Yes: you can assemble and ship a gift box to every employee yourself, and by our estimate 25 logo mug gift boxes take about 9 hours of hands-on work, plus a week or more waiting for supplies to arrive. Packing alone is about 3½ hours (about 8 minutes a box), after a mug printer's proof, about 8 supply orders, 25 labels and 25 cards. Per box, it comes out about even: about $38 with USPS counter postage or about $34 with commercial postage, against our $35, with $1,192.84 paid up front for the mugs, the retail supply packs and 25 postage labels, with leftovers (our DIY cost comparison, prices as of Oct 26, 2026). One mug packed without a collar can break at the handle and must be bought, packed and shipped again.
What to know before you order
- The treats: LINDOR truffles contain milk, soy and barley malt (gluten); read the labels. Every box holds the same treats, and the allergy and diet checklist covers what to ask first.
- Where we ship: from New York to the lower 48 states and Washington, DC, except Texas for now: no Alaska, Hawaii, Puerto Rico, other US territories, APO/FPO or international addresses. The order page flags those rows so you can fix them or take them out before you pay; everything else on your list stays as it is.
- The card: one message and one sign-off for the whole order, greeting each person by first name, and you see every card before you pay. A line about one person's year goes in an order of its own; one box is a complete order.
Every Employee Gift Guide
- Plan: How much to spend · Bulk Christmas gifts · Who gets a holiday gift · Gifts by team size · Bonus or gift? · Managers buying for their team
- Remote teams: Gifts for remote employees · Collecting home addresses · Remote Secret Santa
- Ideas: Gifts that aren't gift cards · Small appreciation gifts · Employee gift boxes compared
- Milestones and other people: New-hire welcome · Work anniversaries · Farewell and retirement · Promotions · Birthday program · Interns · Contractors and freelancers · Speakers and VIPs
- Dates: Order-by dates · Employee Appreciation Day 2027 · Administrative Professionals Day · Boss's Day
- What to write: Employee holiday card messages · "Merry Christmas" or "Happy Holidays"? · The card message library
- Rules: Employee gifts and taxes
- Clients instead? Client holiday gifts 2026 · Client gifts by profession
Where Personalized Gifts Delivered Fits for Your Team
This page's answer is the bonus first, then the same small gift for everyone with a note. Personalized Gifts Delivered makes that gift and gets it to every home:
- The same box for everyone: an 11 oz white ceramic mug with your logo printed small (or a photo or a few words), with Ghirardelli cocoa and 4 Lindt LINDOR milk chocolate truffles packed inside it, black tissue closed with a gold seal, in a matte-black gift box with a magnetic lid.
- A card for each person: your message, printed, greeting each person by first name, in an envelope closed with a gold wax-seal sticker. You see every person's card before you pay.
- To each home: one address list, each box to its own address, packed by hand in foam, in a plain white carton whose return address shows PersonalizedGiftsDelivered.com. Ships within 2 business days of a complete order (your design, your address list and payment). Ships by USPS Ground Advantage or UPS Ground, with tracking, and usually arrives 2–5 business days after it ships. Delivery dates are carrier estimates, not guarantees, and run slower in mid-December.
- One price, any team size: $35 per box, delivered, whether you send 1 or 50, with no minimum and no setup fee.
- A record: when your boxes ship, you get one email with a spreadsheet of recipient, ship date, carrier, tracking number and $35 per box.
Add your logo (or type your website and we'll find it), or a photo or a few words for a personal gift; check the preview of your mug and card; add your address list; and pay $35 per box. We print, pack and ship each box to its own address. Team list ready? Start your order.
Frequently asked questions
- What should a small business give employees for Christmas?
- A cash bonus comes first if the business can afford one: in a 2014 Express Employment Professionals poll (SHRM), 27% of employees chose a cash bonus, more than any other single option, and 1% chose gift items. A common pattern adds the same small gift and a personal note for everyone. Without a bonus budget, a modest gift with a real note, a team meal or paid time off are the usual choices.
- Is a gift card or a physical gift better for employees?
- IRS Publication 15-B lists "Holiday or birthday gifts, other than cash, with a low fair market value" among its de minimis examples, and says gift cards, "no matter how little, are never excludable as a de minimis benefit." The IRS gives no dollar threshold. Ask your tax professional how your own gifts are treated.
- Should every employee get the same Christmas gift?
- Yes: give every employee the same Christmas gift to avoid comparisons, and make the note personal; research finds givers over-personalize when shopping for groups. A bonus can still scale with hours or years of service, as long as the rule is the same for everyone.
- Do part-time employees get a Christmas gift?
- Some small businesses give part-time staff the same gift and a smaller bonus: one owner on r/smallbusiness described a pre-Christmas bonus of $75 for part-time and $150 for full-time employees.
- How much do businesses spend on employee Christmas gifts?
- Employers' 2025 holiday gifts on Tremendous, a gift-card platform, averaged $62, with a $25 median (platform data, not a market survey). A 2014 Challenger survey described smaller year-end gifts as typically valued under $100; there is no neutral current survey.
- Who ships a Christmas gift box to each employee's home with no minimum?
- Personalized Gifts Delivered ships a logo mug gift box, or a personal one with a photo or a few words, to each employee's own address from one list: $35 per box delivered, with no minimum, whether you send 1 or 50, and a printed card that greets each person by first name.
A custom logo mug gift box, shipped to each employee's home
$35 per box, delivered. No minimum: one box is fine. Add your address list and we ship each box to its own address.
See the gift boxSources
- IRS, Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits, "De Minimis (Minimal) Benefits", irs.gov/publications/p15b, read Oct 26, 2026.
- IRS, "De Minimis Fringe Benefits", irs.gov (page last reviewed Jun 28, 2026), read Oct 26, 2026.
- USPS, "Holiday Shipping Dates" (2026 recommended send-by dates), usps.com, read Oct 29, 2026.
- Kube, S., Maréchal, M. A., and Puppe, C. (2012), "The Currency of Reciprocity: Gift Exchange in the Workplace", American Economic Review 102(4): 1644–62, aeaweb.org.
- Steffel, M. & Le Boeuf, R. A. (2014), "Overindividuation in Gift Giving", Journal of Consumer Research 40(6), via Washington University.
- Flynn, F. J. & Adams, G. S. (2009), "Money Can't Buy Love", Journal of Experimental Social Psychology 45(2), via Stanford GSB.
- SHRM, "Holiday Rewards: Cash vs. Gifts" (Stephen Miller, Dec 5, 2014; Express Employment Professionals polls and a Challenger, Gray & Christmas survey), shrm.org, read Oct 26, 2026.
- Tremendous, "Employee holiday gifting trends" (2025 platform data, published Oct 12, 2026), tremendous.com, read Oct 29, 2026.
- Snappy, 2025 Holiday Gifting Report (vendor survey; sample size not published), published Oct 31, 2025, updated Dec 2, 2025, snappy.com, read Oct 29, 2026.
- r/smallbusiness, "Christmas gifts for employees at a small business - where do you start?" (Sept 2026), reddit.com/r/smallbusiness/comments/1wamda4, quotes checked word for word against the Arctic Shift archive, Oct 29, 2026.