Must I return a computer given by former employer?

Full question:

Employer purchases a personal computer for employee and gives employee computer as gift.employer lays off employee and then six weeks later fires employee and demands computer returned as company property.Employee has been in possession of computer from 1-01-09 to present. We reside in Pennsylvania. Who has original receipt of purchase Employee has possession. Who would likely have the right of possession of the computer.

  • Category: Employment
  • Date:
  • State: Pennsylvania

Answer:

Equipment provided to an employee in order for the employee to complete the responsibilities of his position generally is considered company property. "Gifts" to employees typically are viewed as compensation and may be subject to tax. Compensation in the employment context is defined as all rewards received by a worker for duty and services rendered related to a job. This may include hourly wages or salary, overtime, bonuses, stock options, health insurance, pension plans, vacation and sick time, and all other benefits received from an employer. Gifts and compensation generally are not returned upon termination of employment.

However, if the company believes the computer to be company property only provided for the purpose of performing job tasks, it could pursue legal action to regain possession of the item.

It would be important to review any policies provided to you at the time of employment or in place while employed.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

In the U.S., an employee can receive up to $15,000 per year in gifts from an employer without triggering a tax liability under the IRS gift tax exclusion. However, if the gift is considered compensation for services, it may be subject to income tax. It's essential to clarify whether the gift is a personal gift or compensation to determine tax implications.