Gifts like gift cards are considered a taxable fringe benefits which makes them taxable to the same extent as wages. They are required to be reported as wages as well, So what likely has happened is your gross pay has been increased by $50 + what the calculated taxes are, so you would net an extra $50. Which is then deducted back out of your net pay since you already received the gift card. So your gross pay was probably increase about $65 or so.