Taxes

Here is an overview of how to access the reports needed for taxes and additional information provided by Nectar for tax purposes.

Written by Marissa Tingey
September 2, 2025

How does Nectar help with taxes?

While Nectar can't provide tax advice, we make it easy to download the reports you may need for tax reporting and compliance. Always consult with your company’s finance team or a licensed tax advisor for guidance based on your organization’s location and structure.

Does Nectar offer tax guidance?

No, Nectar cannot offer tax advice, as tax laws vary by:

• Country
• State or province
• Municipality
• Type of organization

Reminder: Always consult your finance department or legal/tax advisor for any tax-related decisions.

How do I access reports for tax purposes?

Admins can download reward redemption data directly from the platform:

1. Go to Analytics > Reward Spend > scroll down to Total Reward Spend Breakdown.
2. Choose your desired date range.
3. Click Download (top right corner).

This report includes all redeemed rewards and can be sent to your finance or accounting team for tax compliance.

How do other companies approach reward taxation?

While Nectar does not advise on tax treatment, here are a few examples of how some customers handle rewards:

• Some do not treat gift cards as taxable income.
• Others treat rewards as taxable only if the total value exceeds a set annual limit (e.g., $400/year).
• Since awards are given to an employee for work related to their employment,

they are typically taxable as gross income. However, there are exceptions to this general principle that exclude non-cash awards from tax. There are three notable exceptions:

• Certain employee achievement awards such as length of service and safety award
• Certain prizes or awards transferred to charities.
• De minimis awards and prizes.

These are just examples. Your specific treatment of rewards must be determined by your tax professional.

What is the tax notice popup for redemptions?

Nectar offers an optional tax notice popup that displays when users redeem:

• Gift cards
• Amazon products
• Swag

What the popup does:

• Displays a non-customizable message before completing the reward redemption.
• Informs users that rewards may be subject to tax.
• Reappears every time a redemption is made.

Note: This feature is not enabled by default. To activate it, contact Nectar Support or your Nectar Account Manager.

Here is a quick video of the gift card redemption process with the tax notice enabled.

Open video in Loom

Legal disclaimer

The information contained herein is not legal or tax advice and is not intended to be used, and cannot be used, for purposes of avoiding tax penalties or tax. Nectar assumes no obligation or responsibility to inform the reader of any changes in tax laws or other factors that could affect information contained herein. Before making any decision based on this information you should consult with the appropriate legal or tax advisor.