Do I have to pay Fringe Benefit Tax (FBT) on gifts to employees?

Gifts to employees is not subject to Fringe Benefit Tax (FBT) if it is under $300 per quarter or $1 200 per year. However, if it exceeds $300 for the quarter the full value is FBT payable. There is also a maximum employer exemption for all employees of $22,500 per year.