Work Anniversary Gifts by Year (1, 5, 10), What to Write in the Card, and the IRS Service-Award Rules

We sell a $35 personalized mug gift box, printed, packed and shipped to each person's address. This guide covers the other options too.

Key facts

• Twice as likely to quit: "employees who do not feel adequately recognized are twice as likely to say they'll quit in the next year" (Gallup, 2016, updated Jan 2024).
• What the exclusion leaves out: IRS Pub. 15-B says the achievement-award exclusion "doesn't apply to awards of cash, cash equivalents, gift cards, gift coupons, or gift certificates (other than arrangements granting only the right to select and receive tangible personal property from a limited assortment of items preselected or preapproved by you)" (Pub. 15-B, read Oct 29, 2026).
• $400 or $1,600: "The excludable annual amount is $1,600 ($400 for awards that aren't "qualified plan awards")" (same).
• The 5-year line: the tax code says an item "shall not be treated as having been provided for length of service achievement if the item is received during the recipient's 1st 5 years of employment" (26 U.S.C. 274(j)(4)(B)).
• "Do not, under any circumstances, give them a keychain": a commenter who got one for 10 years as "the top salesman in the state" (r/smallbusiness).

Part of our employee gifts guide.

Work Anniversary Gifts by Year

What owners and HR people describe giving, in their words, beside our suggestion. A handful of companies, not a survey.

Which years? One person who runs a large company's service-recognition program: "We recognize 1, 3, 5, and every 5 years thereafter and we think this is a good cadence" (r/humanresources). On year 1, the commenter quoted in the table's first row: "Nowadays, people don't stick around for 5 years. So, the ones who are less than 5 just don't get recognized? That would kind of suck in my opinion."

What a 10-Year Employee Hears in a Keychain

In June 2023, an owner with 4 employees asked r/smallbusiness what to give two people reaching 10 years (thread). A recurring answer was cash and time off. One reply: "Cash and PTO, ie give them an extra paid week off and a couple of thousand in cash. Make them take a vacation." The owner's edit after reading the replies: leaning towards "a weeks PTO, $1000 + Raise, and a really nice luggage set."

The threads also list what fell flat:

• A keychain. "For my 10 year at a multinational corporation where I was the top salesman in the state, I was given a keychain." Asked if it had the corporate logo: "Yes, their logo and a piece of paper in the box thanking me for 10 years. The keychain was metal and it was not engraved, not that it would have made a difference."
• A crystal globe. "I just had my ten year this weekend. I got a crystal globe. Cash was preferred." (r/smallbusiness)
• Pins and desk trinkets. From the person who runs that service-recognition program: "Forget the pins and other desk tchotchkes, they are not worth the expense and are useless."

The case for an object, from the 10-year thread: "On the one hand, cash and PTO are great, on the other hand a an actual gift, perhaps in addition to that, does create a semi-permanent reminder of your appreciation." And for the words: "Put it in a nice card with a list of accomplishments and letter of appreciation."

For a big year, then (our suggestion): the cash or time off, a keepsake with the person's name on it, not only the company's, and a note listing what they did.

Are Service Anniversary Awards Taxable? The IRS Rules

IRS Publication 15-B gives service awards their own exclusion:

"This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. The exclusion doesn't apply to awards of cash, cash equivalents, gift cards, gift coupons, or gift certificates (other than arrangements granting only the right to select and receive tangible personal property from a limited assortment of items preselected or preapproved by you)." …

"An achievement award must meet all the following requirements. It is given to an employee for length of service or safety achievement. It is awarded as part of a meaningful presentation. It is awarded under conditions and circumstances that don't create a significant likelihood of disguised pay." …

"The excludable annual amount is $1,600 ($400 for awards that aren't "qualified plan awards")." … "A qualified plan award is an achievement award given as part of an established written plan or program that doesn't favor highly compensated employees as to eligibility or benefits."

IRS Publication 15-B (2026), "Achievement Awards". Read Oct 29, 2026.

The tax code adds a timing rule:

"An item shall not be treated as having been provided for length of service achievement if the item is received during the recipient's 1st 5 years of employment or if the recipient received a length of service achievement award (other than an award excludable under section 132(e)(1)) during that year or any of the prior 4 years."

26 U.S.C. 274(j) (Cornell LII). Read Oct 29, 2026.

What the texts leave to your tax professional, as questions to bring:

1. Is the gift "tangible personal property", and is it given "as part of a meaningful presentation"?
2. Is it part of "an established written plan or program" (a qualified plan award), or under the $400 figure?
3. Is the item received after "the recipient's 1st 5 years of employment", with no length of service achievement award "during that year or any of the prior 4 years" (other than one "excludable under section 132(e)(1)")?
4. If a gift doesn't fit these rules, do others apply? Pub. 15-B's de minimis examples are quoted on employee gifts and taxes.

This is information, not legal or tax advice. Check the current rule (or ask your tax professional) before you send.

What to Write in a Work Anniversary Card

The card is where the "list of accomplishments" goes. Each message is under 300 characters, with no sign-off inside; "{first name}" fills in from the address list.

1 year

Happy one-year anniversary, {first name}! A year ago you didn't know where anything was. Now half the team asks you first. Thank you for a great first year.

3 years

Three years today, {first name}! You've made [team or process] better than you found it, and we notice. Thank you for sticking with us.

5 years

Five years, {first name}. [The thing they built] still runs the way you set it up, and every new hire learns from it. Thank you for five years of doing it right.

10 years

Ten years, {first name}. You were here for [an early milestone], and much of what we're proud of has your fingerprints on it. Thank you, truly. Take the week, you've earned it.

15 or 20 years

[15] years, {first name}. There's no one here who hasn't learned something from you, including me. Thank you for every one of those years.

A remote employee

Happy work anniversary, {first name}! We haven't shared an office, but we've shared [number] years of good work. Thank you. Raise a mug with us on Friday's call.

From the owner of a small business

{first name}, [number] years ago you took a chance on a small company. I don't take a day of it for granted. Thank you for everything you've built here.

Kumar and Epley found that people writing gratitude letters "underestimated how positive recipients would feel" (University of Chicago News, Sep 2018). The card is the cheapest part of the gift and the one most worth the time. More lines: our card message library.

What Sending It Yourself Takes

Yes: you can make a personalized anniversary gift yourself, and for one gift our DIY cost comparison priced a Printful mug shipped to you at about $12.76 and counter postage for the finished box (Zone 5) at $15.70: $28.46 before the cocoa, truffles, gift box, tissue or card (as of Oct 29, 2026). For 25 boxes it comes out about even with our $35: about $38 a box with USPS counter postage and about $34 with commercial postage, with $1,192.84 paid up front, and by our estimate about 9 hours of hands-on work plus a week or more waiting for supplies. And a name misspelled on a printed mug means printing it again.

Ordering from us, by contrast: type their name and years (or upload your logo), add their address, check the preview, pay. We print, pack and ship each box to its own address.

What to Know Before You Order

• One design per order. Every mug in an order carries the same photo or words, so a name on the mug means one order per person: one box is a complete order. A logo mug for everyone reaching a milestone this month can go in one order, each card greeting its person by first name.
• Words on the mug. A name or a few words, such as "Maria, 10 years", in a choice of 3 fonts; you see it on the mug before you pay. The fonts print Latin letters, including most accents.
• The seal says "Happy Holidays". On every box today, the black tissue inside closes with a gold "Happy Holidays" seal sticker; your card carries the anniversary.
• The card is printed. One message and one sign-off per order, up to 300 characters; the order page tells you if a message is too long to print.
• The treats. LINDOR truffles contain milk, soy and barley malt (gluten); read the labels. In summer, Lake Champlain Chocolates says that "exposure to heat and humidity can cause the chocolate to bloom or melt" (Lake Champlain Chocolates).
• 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 a row we can't ship to, so you can fix it or take it out before you pay.
• Timing. 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.

Where Personalized Gifts Delivered Fits for a Work Anniversary

In the threads above, the big years get cash or time off, one reply asks for "a list of accomplishments and letter of appreciation", and another says an actual gift "does create a semi-permanent reminder of your appreciation." Personalized Gifts Delivered does the keepsake, with their name on it, and the note, with no minimum: a personalized mug gift box shipped to their door, $35 per box, delivered.

• Their name, not just yours: an 11 oz white ceramic mug printed with their name and years, a photo, or your logo, with a 1.5 oz packet of Ghirardelli premium hot cocoa and 4 Lindt LINDOR milk chocolate truffles packed inside it, in a matte-black gift box with a magnetic lid.
• The note: your message, printed on a textured card in an envelope closed with a gold wax-seal sticker, lying on the lid so it's read before the box opens. You see the mug and the card before you pay.
• To their home: packed by hand in foam and shipped in a plain white carton; the return address shows PersonalizedGiftsDelivered.com, and your name appears only on the card inside.
• A record: when the box ships, one email brings 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. Anniversary coming up? Start a personal order.