Our new insurance program offers employees incentives where they can redeem points earned for gift cards.  We are trying to work out a way for us to report their redemptions on W-2 forms.  Our CPA says it needs to be entered in box 1 as a fringe benefit and we should set it up as an other pay in BW.  I'm just a little confused as setting it up as an other pay would require paying the amounts, which we shouldn't be doing as we are simply recording their redemptions and not actually paying anything.  Thoughts?