Rewards

Rewards can be used anywhere you want to recognize employees or drive engagement: Shout-Out Recognition, birthdays, anniversaries, milestones, surveys, referrals, Employee of the Month, and more.

Employees earn points and accrue points towards a Redemption Balance. Admins configure branding, budgets, rules, and the rewards catalog. Redemptions are delivered instantly via a mobile-friendly experience.

For Managers & Admins

What can I configure?

• Branding (Reward Currency): Name your currency (e.g., “Acme Awards,” “High Fives”) and upload a custom image or logo.
• Programs & Rules: Configure shout-outs (fixed or variable points), automate birthdays/anniversaries/milestones, give rewards for new hire and engagement survey completion.
• Budgets & Forecasting: See projected annual spend based on your rules and allocations.
• Catalog Control: Turn specific gift cards/charities on or off

Can different roles have different monthly balances?

Yes. For example, managers can receive more points to give each month than team members. Additionally, you can also choose fixed recognition amounts (e.g., every shout-out = 25 points) or allow variable ranges (e.g., 0–100 points).

How do fixed vs. variable shout-out amounts work?

• Fixed: Every shout-out is a set number of points (simple and predictable).
• Variable: Managers choose a value within a range (adds flexibility while staying within guardrails).

Can we automate non-shout-out rewards?

Yes. Configure automated awards for birthday (e.g. 500 points each birthday) or work anniversaries (e.g. 250 points at 1 year, 500 points at 2 years, etc) or for survey completion (e.g. 250 points for a new hire survey and 1,000 points for an engagement survey)

How does the catalog stay current?

We partner with Tremendous, which manages retailer and charity integrations so your catalog is always up to date.

How do budget forecasts work?

As you adjust roles, point amounts, and automated programs, the forecast updates to estimate annual spend—helping you plan and control costs before launch.

Can we restrict/curate the catalog?

Absolutely. Enable/disable brands with a click (e.g. hide competitors, spotlight companies aligned with your values).

How will the Tremendous relationship work?

As part of the onboarding process, you will set up an account in Tremendous and fund your account (see walkthrough tutorial).  Day-to-day you won’t need to access Tremendous, mainly just when you want to update your funding.

How does funding work?

Tremendous offers three ways to fund your account: credit card (instant, but carries a 3% processing fee), bank account/ACH (no fee, funds available next business day), or invoice (Tremendous sends you an invoice, and once payment is received via ACH or wire, funds are added to your balance). All three methods are forms of prefunding, meaning your balance must be loaded before employees can redeem rewards. The good news: goHappy only debits from your Tremendous balance when employees actually redeem their points, not when points are awarded. So your money stays in your account until someone cashes in. And if you ever cancel, Tremendous returns any remaining balance.

What is auto-replenish?

To keep your program running smoothly, goHappy offers an auto-replenish feature. Admins can set a threshold and top-up amount so that when your Tremendous balance drops below a certain level, it's automatically refunded. This means you don't need to load a large amount upfront. Instead, you can start with a smaller balance and let auto-replenish keep it topped off as employees redeem, keeping your cash outlay low while ensuring your program never runs dry.

Can we be billed in arrears (pay after the fact)?

Tremendous's standard model requires prefunding. However, they do offer exceptions for billing in arrears or NET terms on an account-by-account basis. If this is important to your organization, let your goHappy contact know and we can work with Tremendous to explore options before finalizing your setup.

Why Tremendous?

We wanted to partner with a provider who had a large catalog of options that aligned with frontline workers and provided a seamless experience.

For Employees

How will I know I received points?

You’ll get a text message when you’re recognized and can access your point balance within The Hub at any time from anywhere.

What are the two balances I see?

• Give Balance – the points you can give to others (resets monthly).
• Redeem Balance – the points you’ve received and can spend (accrues over time).

How do I redeem points?

From your hub, tap Redeem Points to open the rewards store. Browse 300+ options including digital gift cards, charitable donations, and bank deposits. Choose a brand, enter the amount, confirm, and you’ll receive a text with your digital card instantly.

Is this mobile-friendly? Do I need an app?

The experience is mobile-first and works from the link you receive by text, so you can redeem anytime, anywhere from your phone without any app.

How much are my points worth?

100 points = $1.00.  You control how many points each of your employees receives each month.

Can I save points for a larger reward?

Yes. Your Redeem Balance accrues over time. You can redeem whenever you like.

What if I don’t see a brand I want?

Your company chooses which options are available. If something’s missing, check with your manager or HR.

What redemption options are available?

Digital gift cards, charitable donations, and bank deposits. Options may vary based on your employer’s catalog selections.

How quickly do employees receive rewards?

Redemptions are delivered immediately via text with a link to the digital card.

Troubleshooting

I redeemed but didn’t get my card. What should I do?

Confirm your mobile number and check for the text link. If it’s still missing, contact your program admin or HR for assistance.

My Give Balance didn’t reset.

Give Balances reset monthly based on your program rules. If yours didn’t update, reach out to your admin.

A brand is missing from the catalog.

Your admin controls catalog availability. Share the request with your manager/HR.

Tax Considerations

The information contained herein is provided for general informational purposes only and does not constitute tax advice, legal advice, or any other professional advice. goHappy makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, or currentness of this information.

These FAQs are not intended to be, and should not be relied upon as, a substitute for consultation with a qualified tax professional. Tax laws and regulations are complex, subject to change, and vary based on individual circumstances. The application of tax laws to any specific situation depends on facts and circumstances that are unique to each taxpayer.

Nothing herein creates an attorney-client relationship, accountant-client relationship, or any other professional relationship between goHappy and any reader. goHappy expressly disclaims any liability arising from reliance on the information contained herein.

You should consult a qualified tax advisor or other appropriate professional before making any decisions based on tax-related matters.

Are rewards taxable?

In most cases, yes. The IRS generally treats cash and cash-equivalent rewards (gift cards, prepaid cards, bank deposits) as taxable supplemental income, regardless of the dollar amount. This applies whether rewards are given for recognition, milestones, survey completion, or any other reason.

Generally, points themselves are not taxed when awarded. Tax implications typically arise at the point of redemption, when an employee converts points into a gift card, bank deposit, or other cash-equivalent reward.

What about de minimis (small value) exceptions?

The IRS does allow a narrow exception for "de minimis fringe benefits," which are small, infrequent, non-cash perks where the administrative cost of tracking would be unreasonable (think: a birthday cake or a holiday turkey). However, gift cards and cash equivalents do not qualify for this exception, even at low dollar amounts. Because goHappy Rewards redemptions are cash-equivalent by nature, most organizations treat all redemptions as taxable.

What does goHappy provide to help?

goHappy provides a downloadable Redemption Report that includes all employee redemptions and their dollar values. Most organizations share this report with their payroll team on a regular basis (monthly or per pay period) to ensure rewards are properly included in wages for tax reporting purposes (W-2s, etc.).

What is our organization responsible for?

Your organization is responsible for determining how rewards should be treated for tax and payroll purposes based on your specific program design, policies, and jurisdiction. Common decisions include whether to "gross up" rewards (covering the tax cost so employees receive the full value) and how to report redemptions on employee pay statements.

We strongly recommend consulting with your payroll team or a qualified tax advisor to ensure compliance with federal, state, and local regulations.

Important: goHappy is not a tax or legal advisory service, and this content should not be considered tax advice or relied upon in any manner.

Will employees owe taxes on rewards?

In many cases, yes. The IRS generally treats gift cards, bank deposits, and other cash-equivalent rewards as taxable income. If your employer includes reward redemptions in your wages, you may see the amount reflected on your paystub or year-end tax forms (W-2). If you have questions about how rewards affect your personal taxes, contact your HR/payroll team or a tax professional.

Important: goHappy is not a tax or legal advisory service, and this content should not be considered tax advice or relied upon in any manner. You should consult a qualified tax advisor or other appropriate professional before making any decisions based on tax-related matters.