Food is one of the most welcome gifts you can give a team. Everyone eats, everyone shops for groceries, and a holiday meal on the company feels personal in a way a generic bonus doesn’t. That’s why so many HR teams reach for a grocery gift card when the holidays come around.
But a grocery gift card isn’t the only way to give the gift of food, and for companies with employees in more than one town, it often isn’t the easiest. Below, we compare a traditional grocery store gift card with a gThankYou Grocery Gift Certificate on the things that matter most to the people buying them: where they work, what they buy, how they’re taxed, and how much work they take to hand out.
What is a grocery store gift card?
A grocery store gift card is a prepaid card loaded with a dollar amount that can be spent at one supermarket chain, like Kroger, Publix or Hy-Vee. A supermarket gift card works like store credit: the employee spends it down over one or more trips until the balance runs out.
For a single-location company where everyone shops at the same store, that can work fine. The trouble starts when your team is spread out. A Hy-Vee card isn’t much use to an employee whose nearest store is a Pick ‘n Save, and a remote worker in another state may not have that chain at all. Buying the right card for every person quickly turns into a spreadsheet project.
There are two other catches HR teams often don’t expect:
- They buy more than groceries. A grocery gift card can typically be used on anything the store sells, including alcohol, tobacco, pharmacy items and general merchandise. If you meant to give a holiday meal, that isn’t guaranteed.
- They’re taxable income. The IRS treats gift cards as cash equivalents. That means a grocery gift card of any amount counts as wages and belongs on the employee’s paycheck for tax purposes.
What is a gThankYou Grocery Gift Certificate?
A gThankYou Grocery Gift Certificate is a high-value manufacturer coupon, the same kind of coupon shoppers have been handing to cashiers for decades. Instead of being tied to one store, it can be redeemed at virtually any grocery store in the U.S. that accepts manufacturer coupons, from major chains to independent grocers.
The certificate covers any combination of food items, any brand, and it can’t be used on alcohol, tobacco or other non-food merchandise. gThankYou also offers certificates for a specific item, like a whole turkey or ham of any brand and size, for companies that want to give a classic holiday meal centerpiece.
You buy one kind of certificate for your whole team. Each employee takes it to the store they already shop at, picks the food they want, and redeems it at checkout.
Grocery gift card vs. gThankYou certificate: side-by-side chart
| Grocery store gift card | gThankYou Grocery Gift Certificate | |
|---|---|---|
| Where it can be used | One supermarket chain | Virtually any U.S. grocery store that accepts manufacturer coupons, chains and independents |
| Works for a team in many cities | Only if everyone lives near that chain | Yes, one certificate works nationwide |
| What it buys | Almost anything the store sells, including alcohol and tobacco | Food items only, any brand |
| Employee picks the store | No | Yes |
| Tax treatment | Cash equivalent, taxable as wages at any amount | Certificates for a specific item, like a turkey or ham, can qualify as a de minimis fringe benefit, which isn’t taxed as wages; confirm with your tax advisor |
| Personalization | Usually none | Company name, employee name or logo at no extra charge |
| How it’s spent | Balance carries over multiple trips | One-time use; no change given |
| Expiration | Federal law generally requires at least five years | Has an expiration date printed on the certificate |
| Stores that don’t accept it | Every store outside that chain | Costco, Sam’s Club and Aldi; Walmart and Target aren’t recommended. A mail-in option covers these |
Chart: how a grocery gift card and a gThankYou certificate compare for employee gifting.
The differences that matter most
One gift for every location. With a supermarket gift card, you’re choosing a store for each employee. With a gThankYou certificate, they choose. That makes it far simpler for companies with multiple sites, field teams or remote staff, since the same certificate works in Green Bay, Phoenix or anywhere in between.
The gift stays a gift of food. Because a grocery store gift card spends like cash, there’s no telling where it ends up. A gThankYou certificate can only be used on food, so the holiday dinner you meant to give is the one your employees get.
Taxes are worth a closer look. Every grocery gift card is taxable to the employee, no matter how small. gThankYou Turkey and Ham Gift Certificates are different: because each one is for a single, specific item, they can qualify as a de minimis fringe benefit. “De minimis” is the IRS term for a small, occasional, non-cash gift that’s so low in value it isn’t counted as taxable income, like the classic holiday turkey. That means no added tax for your employees and no extra payroll reporting for you. Tax rules depend on your situation, so check with your accountant before you finalize your gift plan.
Less work for HR. Ordering the right store card for every employee takes time. gThankYou certificates can be personalized with your logo or each employee’s name, and ship quickly, so you can place one order and move on to the rest of your holiday list.
When a grocery gift card still makes sense
A grocery store gift card can be the right call if your whole team works at one site, shops at the same chain, and you’d like them to be able to spend the balance over several trips on anything the store carries. If that describes your company, a store card is simple to buy.
If your employees live in different towns, shop at different stores, or you want the gift to go toward food, a gThankYou certificate is the more flexible choice.
Frequently asked questions
Is a grocery gift card taxable for employees?
Yes. The IRS considers a grocery gift card a cash equivalent, so its full value counts as taxable wages, even for small amounts.
What does de minimis mean for employee gifts?
A de minimis fringe benefit is a small, infrequent, non-cash gift the IRS considers too minor to tax. A holiday turkey or ham is a common example. Cash and gift cards never qualify, but a gThankYou certificate for one specific item, like a turkey or ham, can.
Can a grocery store gift card be used at any supermarket?
No. A grocery store gift card only works at the chain that issued it. A gThankYou certificate can be used at virtually any U.S. grocery store that accepts manufacturer coupons.
What’s the best supermarket gift card for remote employees?
For a team spread across different cities, a store-specific supermarket gift card means guessing where each person shops. A gThankYou certificate lets each employee pick their own grocery store, so one gift works for everyone.
Can employees buy alcohol with a gThankYou certificate?
No. gThankYou Grocery Gift Certificates are for food items only. They can’t be used on alcohol, tobacco or other non-food merchandise.
What if an employee’s store doesn’t take coupons?
Stores like Costco, Sam’s Club and Aldi don’t accept manufacturer coupons. Employees who shop there, or who buy groceries online, can use gThankYou’s mail-in redemption option instead.
Give the gift of food, wherever your team shops
A grocery gift card is a nice thought, but it asks you to guess where each person shops and leaves the rest to chance. A gThankYou Grocery Gift Certificate works at the store your employees already use, goes toward the food they want, and takes one order to set up.
